Preheat your oven to 350°F (175°C).

Grease and flour three 8-inch round cake pans.

In a medium bowl, whisk together the all-purpose flour, baking powder, baking soda, and fine sea salt.

In a large mixing bowl, beat the unsalted butter and granulated sugar until light and fluffy.

Add the large eggs, vanilla extract, and coconut extract, mixing until fully incorporated.

Gradually add the dry ingredient mixture into the wet ingredients alternating with the canned coconut milk.

Fold in the sweetened shredded coconut.

Divide the batter evenly among the prepared cake pans and bake for 25-30 minutes.

Remove cakes from the oven and let them cool in the pans for about 10 minutes.

Transfer the layers to a wire rack to cool completely.

Apply a thin crumb coat of cream cheese frosting on top and sides of the cooled cake.

Chill the cake for 15 minutes and then add a final coat of frosting.

Sprinkle with toasted shredded coconut before serving.