Preheat the oven to 350°F. In a large bowl combine the dry ingredients (flour, baking powder, and salt).
In a separate large bowl combine the granulated sugar, 6 Tbsp softened butter, and cooking oil. Blend with a hand mixer until well combined. Now add in the eggs, 1 tsp vanilla extract, ¾ tsp coconut extract, and coconut milk. Blend until smooth.
Add the dry ingredients to the bowl of wet ingredients. Although I don’t usually do this, I sifted the dry ingredients into the wet ingredients to break up any lumps resulting in a lighter cake crumb. Blend the dry and wet ingredients together until just combined.
Now fold in ½ cup of sweetened coconut flakes into the batter.
Generously grease the bottom and sides of two 8-inch cake pans with butter. Then line the bottom of the cake pans with parchment paper. Divide the cake batter evenly between both pans. You can eyeball it or use a dry measuring cup to be safe.
Place both cake pans in the preheated oven and bake for 28-30 minutes or until the tops are golden brown and puffed in the center and a toothpick inserted comes out clean.*** Allow the cakes to cool for 10 minutes, then remove them from the cake pans and place on a wire rack to finish cooling completely.
While the cakes are cooling, make the frosting. In a medium bowl blend the softened cream cheese and 6 Tbsp of softened butter until smooth. Now add in the powdered sugar, one cup at a time, along with 1 tsp of vanilla extract and 1 tsp of coconut extract. Blend until smooth.
Once the cakes are completely cooled it’s time to assemble. Start by carefully cutting off the domed tops of both cakes using a serrated knife to create a flat surface.
Place one cake on a cake stand and spread about 1 cup of frosting on top, starting from the center and working your way out. You want a layer of frosting that is ¼ inch deep.
Add the second layer of cake and spread 1 cup of frosting on top, working from the center out. You can allow some of the frosting to run over the sides and edges of the cake.
Now spread the remaining frosting around the sides of the cake and any extra on top. Using your hands, garnish the top and sides of the cake with the rest of the sweetened coconut flakes. Gently press the coconut flakes into the frosting to help them stick. Enjoy this delicious cake with your family and friends!
*The coconut extract helps to add a distinct coconut flavor that the coconut milk and shredded coconut just can’t quite deliver on their own. It really brings everything together and makes the flavor pop. I highly recommend you use it, but you can leave it out if preferred.**Be sure to use unsweetened canned coconut milk, not the kind from a carton. The carton variety is usually thinner and meant for drinking, while canned coconut milk is much creamier. Give the can a good shake before opening.***Cook time will vary slightly if using 9-inch cake pans.The prep time includes time to make the batter and assemble the cake but does not include the cooling time for the cakes. This can vary based on the temperature of your kitchen.