For the Cake:

Preheat the Oven:
Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans or line them with parchment paper.

Mix Dry Ingredients:
In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.

Cream Butter and Sugar:
In a large mixing bowl, beat the softened butter and granulated sugar together until light and fluffy, about 3-4 minutes.

Add Eggs:
Add the eggs one at a time, beating well after each addition. Scrape down the sides of the bowl as needed.

Combine Wet and Dry Ingredients:
Gradually add the dry ingredients to the butter mixture, alternating with the coconut milk. Begin and end with the dry ingredients. Mix until just combined. Stir in the vanilla extract and coconut extract (if using).

Bake:
Divide the batter evenly between the prepared pans. Bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean.

Cool:
Let the cakes cool in the pans for 10 minutes, then turn them out onto a wire rack to cool completely.

For the Coconut Frosting:

Beat Butter:
In a large mixing bowl, beat the softened butter until creamy.

Add Sugar and Coconut Milk:
Gradually add the powdered sugar, one cup at a time, alternating with the coconut milk. Beat until smooth and fluffy. Stir in the vanilla extract and coconut extract (if using).

Assemble the Cake:
Place one cake layer on a serving plate. Spread a layer of frosting on top. Place the second cake layer on top and frost the top and sides of the cake.

Add Shredded Coconut:
Gently press the shredded coconut onto the sides and top of the cake.

Tips:
For a toasted coconut topping, spread the shredded coconut on a baking sheet and toast it in the oven at 350°F (175°C) for 5-7 minutes, stirring occasionally, until golden brown. Let it cool before using.

If you want a coconut filling, mix 1 cup of shredded coconut into the frosting before assembling the cake.

This cake pairs beautifully with a drizzle of caramel sauce or a side of fresh berries.

Enjoy your heavenly Coconut Cloud Cake