Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans to ensure the cakes do not stick.
In a medium mixing bowl, whisk together the flour, baking powder, baking soda, and salt. This dry mixture provides the structure and leavening for the cake.
In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy. This step incorporates air into the mixture, resulting in a tender and light cake.
Add the eggs one at a time, beating well after each addition. This ensures that the eggs are fully incorporated and helps to create a smooth and cohesive batter.
Mix in the vanilla and coconut extracts, which add wonderful aromas and enhance the overall flavor of the cake.
Gradually add the dry ingredients to the wet ingredients, alternating with the coconut milk. Begin and end with the dry ingredients, mixing just until combined. Be careful not to overmix, as this can result in a dense texture.
Fold in the shredded coconut, ensuring it is evenly distributed throughout the batter. This adds texture and a burst of coconut flavor to the cake.
Divide the batter evenly between the prepared cake pans, spreading it out evenly with a spatula. Make sure the batter is level to promote even baking.
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