Unrefined coconut oil: This can be found in a glass jar in most grocery stores. Refined is also frequently available, but unrefined has a more pronounced coconut flavor and is worth seeking out. Be sure to melt the oil before using it (you want it in its liquid form when assembling the cake), as it is often solid when purchased.
Coconut extract: Contributes to the flavor of the cake and frosting in a natural way (it does not give off a floral or fake taste). The entire recipe only requires 3/4 teaspoon and you can always pull back a little if you like (or omit it altogether). If you cannot find coconut extract in your local grocery store, it is easily purchased online.
Full-fat canned coconut milk: A wonderful way to get more flavor and moisture into your cake. It is relatively easy to find in most grocery stores and, like the extract, is used in both the cake and frosting. Canned coconut milk can be lumpy, so be sure to vigorously shake the can before opening it.
Cake flour: Helps lighten the crumb of the cake layers, which are a bit craggy in texture due to the addition of the shredded sweetened coconut.
Shredded coconut: This is folded into the cake batter and is also pressed onto the frosting, adding moisture, flavor, and good looks.
Cream cheese: An essential ingredient, as it contributes to a frosting that is the perfect tangy foil to the sweet, shredded coconut-filled cake layers.
How to Make Coconut Cake
Start by making the cake batter. Adding the extracts when you add the oil helps pop their flavor, as fat carries flavor. Whisk in the whole eggs (no need to separate them) and the milk, sprinkle the leavening and salt over the batter, and whisk again. Combining the leavening and salt with the wet ingredients, rather than with the dry, not only ensures they will be properly distributed in the batter, but also means you do not need to use an extra bowl to whisk your dry ingredients together.
Fold in the cake flour and shredded coconut. Adding these two ingredients at the same time precludes overworking the batter.
Bake the cake layers for 20 to 25 minutes. The layers bake up fast; while they do, save time later by making the frosting.
Make the frosting. Beat room-temperature butter and cream cheese together until creamy. You do not want to overbeat the cream cheese or it will lose structure, so be sure to keep an eye on it. Add the powdered sugar, coconut milk, coconut extract, vanilla extract, and kosher salt, then beat just until combined.
Frost the cooled cake layers. To cool the layers quickly, once removed from the pans, place the layers in the freezer for 15 minutes or so, until room temperature. To cover the sides of the cake in coconut, take one small handful at a time, and gently press it onto the side of the cake, making your way around the whole cake, and going back with additional handfuls to fill in any spots you missed.
Helpful Swaps
Vegetable oil or melted butter may be substituted for the coconut oil, but the cake’s coconut flavor will be compromised.
Whole cow’s milk may be substituted for the coconut milk.
Unsweetened coconut flakes or unsweetened dessicated (finely ground) coconut may be substituted for the sweetened shredded coconut in and on the cake.
The cake is best the day it is made, but leftovers will last lightly wrapped in plastic wrap in the refrigerator for up to 3 days. Let come to room temperature before serving.
The cake layers can be baked ahead, cooled, wrapped in plastic wrap, and left on the counter overnight. The layers can also be frozen for up to a month. No need to defrost the layers before assembling the cake — just bring to room temperature before serving.
To freeze, place the frosted cake in the freezer until frozen solid. Wrap the cake tightly in plastic wrap and freeze for up to 1 month. Thaw uncovered in the refrigerator overnight and then let come to room temperature before serving.
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