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The Best Moist and Fluffy Homemade Coconut Layer Cake with Creamy Coconut Cream Cheese Frosting

A moist slice of two-layer coconut cake recipe with white frosting and toasted coconut flakes on top.

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Create a bakery-style coconut cake from scratch that is incredibly moist and fluffy. This recipe features tender coconut layers and a rich, creamy coconut cream cheese frosting, perfect for birthdays or any special occasion.

Ingredients

Scale
  • 1 3/4 cups all-purpose flour
  • 1 3/4 cups granulated sugar
  • 1 tablespoon baking powder
  • 1/2 teaspoon salt
  • 1/2 cup unsalted butter, softened
  • 4 large eggs, room temperature
  • 1 cup whole milk
  • 1 teaspoon vanilla extract
  • 1/2 cup coconut milk (full fat)
  • 1 cup sweetened flaked coconut, plus more for topping
  • 1 teaspoon coconut extract
  • For the Frosting: 8 ounces cream cheese, softened
  • 1/2 cup unsalted butter, softened
  • 4 cups powdered sugar, sifted
  • 1/2 cup coconut milk
  • 1 teaspoon coconut extract

Instructions

  1. Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans. Line the bottoms with parchment paper.
  2. In a large bowl, whisk together the flour, sugar, baking powder, and salt.
  3. Add the softened butter to the dry ingredients. Beat with an electric mixer on low speed until the mixture resembles coarse sand.
  4. In a separate bowl, whisk together the eggs, whole milk, vanilla extract, coconut milk, and coconut extract until combined.
  5. Gradually add the wet ingredients to the dry ingredients, mixing on medium speed until just combined. Do not overmix.
  6. Gently fold in the 1 cup of sweetened flaked coconut.
  7. Divide the batter evenly between the prepared cake pans. Bake for 30 to 35 minutes, or until a wooden pick inserted into the center comes out clean.
  8. Let the cakes cool in the pans for 10 minutes before inverting them onto a wire rack to cool completely.
  9. To make the frosting, beat the softened cream cheese and butter together until smooth and creamy.
  10. Gradually add the sifted powdered sugar, alternating with the coconut milk, mixing until smooth. Beat in the coconut extract.
  11. Once the cakes are completely cool, frost the first layer, top with the second layer, and frost the top and sides of the entire cake.
  12. Press extra sweetened flaked coconut onto the top and sides of the cake for decoration.

Notes

  • For an extra moist cake, you can soak the cooled layers lightly with a mixture of 1/4 cup coconut milk and 1 tablespoon sugar before frosting.
  • To toast the coconut topping, spread the flakes on a baking sheet and bake at 350°F (175°C) for 5 to 8 minutes, watching closely to prevent burning.
  • Use room temperature ingredients for the cake batter to help achieve a lighter, fluffier texture.

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