Preheat your oven to 350°F (175°C). Grease and flour two round cake pans.

In a bowl, whisk together flour and baking powder.

In a large mixing bowl, cream softened butter and sugar until light and fluffy. Add eggs one at a time until fully incorporated.

Stir in coconut milk and vanilla extract until smooth. Gradually add dry ingredients until just combined; fold in shredded coconut gently.

Divide batter between prepared pans and bake for 25-30 minutes or until a toothpick comes out clean. Allow cakes to cool completely before frosting.

For the frosting, blend cream cheese and powdered sugar until smooth. Frost the cooled cake and garnish with additional shredded coconut.