Step 1: Preheat and Prepare: Preheat oven to 350F (175C). Grease and flour two 9-inch round cake pans. A light coating of flour will help the cakes release cleanly after baking.
Step 2: Combine Dry Ingredients: In a medium bowl, whisk together flour, baking powder, baking soda, and salt. Ensure all ingredients are well combined to avoid pockets of baking powder or soda.
Step 3: Cream Butter and Sugar: In a large bowl, cream together softened butter and granulated sugar until light and fluffy. This step is crucial for incorporating air into the batter, resulting in a tender cake.
Step 4: Add Eggs and Vanilla: Beat in eggs one at a time, then stir in vanilla extract. Mixing one egg at a time ensures they are properly emulsified into the batter, contributing to a smooth texture.
Step 5: Alternate Wet and Dry Ingredients: Gradually add the dry ingredients to the wet ingredients, alternating with coconut milk and sour cream, beginning and ending with dry ingredients. Mix until just combined. Overmixing can lead to a tough cake, so be gentle.
Step 6: Fold in Coconut: Gently fold in 1/2 cup of shredded coconut. Even distribution is key, ensuring each bite has a hint of coconutty goodness.
Step 7: Bake: Pour batter evenly into prepared pans and bake for 30-35 minutes, or until a wooden skewer inserted into the center comes out clean. The cake is done when it springs back lightly to the touch.
Step 8: Cool Cakes: Let cakes cool in pans for 10 minutes before inverting onto a wire rack to cool completely. Cooling completely prevents the cake from crumbling during frosting.
Step 9: Prepare Frosting: In a large bowl, cream together softened butter, confectioners' sugar, and salt until light and fluffy. The goal is a smooth, airy frosting, free of lumps.
Step 10: Add Cream Cheese, Coconut Milk, and Vanilla: Beat in cream cheese, coconut milk, and vanilla extract until smooth. These ingredients enhance the flavor and texture of the frosting.
Step 11: Frost the Cake: Once the cakes are completely cooled, frost the top of one layer and carefully place the second layer on top. Frost the entire cake.
Step 12: Decorate: Sprinkle with remaining shredded coconut. Get creative and ensure even coverage.
Optional tips: For a more intense coconut flavor, toast the shredded coconut before adding it to the frosting. If you don't have sour cream, plain Greek yogurt works as a great substitute. To prevent cakes from sticking, use parchment paper rounds at the bottom of the cake pans.