This moist coconut cake is soft, fluffy, and layered with rich coconut flavor from coconut milk and shredded coconut. Finished with a creamy coconut frosting and a classic coconut coating, it’s an easy homemade layer cake perfect for celebrations, spring gatherings, or afternoon tea.
Preheat oven to 350°F (177°C). Grease three 8-inch cake pans, line with parchment paper rounds, then grease the parchment paper. This will help release the cakes from the pan easily.
In a medium bowl, whisk the cake flour, baking powder, baking soda, and salt together. Set aside.
In a large mixing bowl or the bowl of a stand mixer with the paddle attachment, cream the sugar, butter, and vegetable oil. Beat on medium speed until light and creamy, about 3 minutes, scraping the sides of the bowl as necessary. Add the egg whites, vanilla, and coconut extract and mix until combined, about 1 minute.
With the mixer on low speed, slowly add the dry ingredients and coconut milk. Beat on low speed until combined, then fold in the shredded coconut. The batter will be slightly thick. Divide the batter evenly into the cake pans.
Bake for 20–25 minutes or until the cakes are baked through. The center of the cakes should spring back when gently pressed, or insert a toothpick into the center of the cake, and if it comes out clean, it’s done. Allow cakes to cool in the pans for 20 minutes, carefully invert, remove the parchment paper, and continue cooling on a wire rack.
Coconut Cream Frosting
In a large bowl or the bowl of a stand mixer with the paddle or whisk attachment, beat the butter and cream cheese on medium speed until creamy and smooth, about 2 minutes. On low speed, add the extracts, salt, and confectioners’ sugar until mostly combined. Increase to high speed and beat for 3 minutes. Add more sugar if frosting is too thin, or an extra pinch of salt if frosting is too sweet.
Assembling the Cake
Using a large serrated knife, slice a thin layer off the tops of the cakes to create a flat surface if desired. Place 1 cake layer on a cake stand, cake turntable, or serving plate. Spread 1 heaping cup of frosting evenly over the top. Top with the second cake layer and repeat with more frosting. Top with the third cake layer. Spread the remaining frosting all over the top and sides. Sprinkle coconut on top of the cake and the sides until it's covered completely.
For easy slicing, chill the cake for 30 minutes or keep refrigerated for up to 3 days or until ready to serve. This helps the cake hold its shape when cutting, although it is a soft and fluffy cake!
Notes
Make Ahead & Freezing Instructions: Cake layers can be baked, cooled, covered, and stored at room temperature overnight. The frosting can be prepared, covered, and refrigerated overnight. Before using, let the frosting sit at room temperature for 15 minutes, then beat on medium speed for about 1 minute until smooth. To freeze: Wrap frosted or unfrosted cake layers tightly and freeze for up to 2–3 months. Thaw overnight in the refrigerator, then bring to room temperature before decorating and serving.
Canned Coconut Milk: Use full-fat canned coconut milk (not refrigerated carton coconut milk beverage). Shake or stir well before using.
Sweetened Shredded Coconut: Sweetened shredded or flaked coconut is recommended for the best moisture and texture.
Cream Cheese: Use full-fat brick cream cheese, not spreadable cream cheese.
For a Sheet Cake (9×13-Inch): Pour batter into a greased and lightly floured pan. Bake for about 40 minutes, or until a toothpick inserted in the center comes out clean.
2-Layer Cake: Divide batter evenly between two 9-inch cake pans. Bake for about 25 minutes, or until a toothpick inserted in the center comes out clean.
Cupcakes:This batter yields about 24–30 cupcakes. Fill liners ⅔ full and bake at 350°F (177°C) for 19–21 minutes.