Step 1: Preheat the Oven and Prepare Pans

Preheat your oven to 350°F (175°C).

Grease and flour two 9-inch cake pans to prevent sticking.

Step 2: Cream Butter and Sugar

In a large mixing bowl, use an electric mixer to cream the softened butter and sugar together until light and fluffy. This usually takes about 3-4 minutes.

Step 3: Add Eggs and Vanilla

Add eggs one at a time to the creamed butter and sugar, beating well after each addition to incorporate.

Stir in the vanilla extract.

Step 4: Combine Dry Ingredients

In a separate bowl, sift together the cake flour, baking powder, and salt.

Step 5: Mix Dry and Wet Ingredients

Gradually add the dry ingredients to the wet mixture, alternating with coconut milk. Start and end with the dry ingredients to ensure everything is well incorporated. Mix until just combined to avoid overmixing.

Step 6: Add Coconut

Fold in the shredded coconut gently with a spatula to distribute evenly throughout the batter.

Step 7: Pour Batter into Pans

Divide the cake batter evenly between the two prepared cake pans.

Step 8: Bake

Place the pans in the preheated oven and bake for 25-30 minutes, or until a toothpick inserted into the center of the cakes comes out clean.

Step 9: Cool

Remove the cakes from the oven and allow them to cool in the pans for about 10 minutes. Then, turn out the cakes onto a wire rack to cool completely.

Step 10: Frosting (Optional)

Once the cakes are completely cool, you can frost them with your choice of frosting, such as coconut buttercream or cream cheese frosting. Apply a crumb coat first, chill for 30 minutes, then apply the final coat of frosting.

If desired, sprinkle the top with additional toasted shredded coconut or other decorations.

Step 11: Serve

Once frosted, the cake is ready to be sliced and served.