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! 🥥☁️🍰