Start by preheating your oven to 350°F (175°C). Grease and flour three 8-inch round cake pans, and line the bottoms with parchment paper for easy release.

In a bowl, whisk together the flour, baking powder, and salt. In a separate large bowl, beat the butter and sugar until light and fluffy. Add the eggs one at a time, beating well after each addition. Stir in the vanilla and coconut extracts.

Alternate adding the dry ingredients and coconut milk to the butter mixture, beginning and ending with the dry ingredients. Fold in the shredded coconut until evenly distributed. Divide the batter evenly among the prepared pans and bake for 22–25 minutes, or until a toothpick inserted in the center comes out clean. Let the cakes cool completely before frosting.

For the frosting, beat the softened butter until creamy. Gradually add the powdered sugar, then mix in the melted white chocolate, vanilla extract, and coconut milk until smooth and fluffy.

Assemble the cake by spreading frosting between each layer, then covering the top and sides. Gently press shredded coconut onto the frosting for a stunning finish. Slice and serve to enjoy the heavenly flavors!