• Step 1: Preheat your oven to 350°F (175°C). Grease and flour two 8-inch round cake pans, or line them with parchment paper.
• Step 2: In a medium bowl, whisk together the all-purpose flour, baking powder, and salt. Set aside.
• Step 3: In a large mixing bowl, cream the softened butter and granulated sugar together until light and fluffy, about 2-3 minutes. Beat in the eggs one at a time, then stir in the vanilla extract.
• Step 4: Alternate adding the flour mixture and coconut milk to the butter mixture, mixing just until combined after each addition. Fold in the 1 cup of sweetened shredded coconut.
• Step 5: Divide the batter evenly between the prepared cake pans and smooth the tops. Bake for 30-35 minutes, or until a toothpick inserted into the center comes out clean.
• Step 6: Allow the cakes to cool in the pans for 10 minutes, then transfer them to a wire rack to cool completely before frosting.