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

In a large mixing bowl, whisk together the dry ingredients: flour, baking powder, and salt.

Beat together softened butter and granulated sugar until light and fluffy. Gradually add eggs, mixing well after each.

Add vanilla and coconut extracts to the butter-sugar mixture, then alternately mix in dry ingredients and coconut milk until just combined.

Divide the batter between prepared pans and bake for 25–30 minutes or until a toothpick comes out clean.

For the frosting, beat cream cheese until smooth, add powdered sugar, then incorporate whipped heavy cream and remaining extracts gently.

Assemble the cake by layering frosting between the cooled cake layers and covering the entire cake with frosting.

Sprinkle toasted shredded coconut on top and refrigerate for at least one hour before serving.