• Bake the coconut flakes in a 350℉ (180℃) oven for about 10 minutes until some parts turn brown. Let it cool. You can do this a day or two in advance.
• Preheat the oven to 325℉ (160℃). Grease two 9-inch pans generously with cooking spray and set aside.
• Cream the butter and sugar at high speed in a stand mixer until fluffy and starting to look white, 4-5 minutes.
• Stir in the egg yolks, beating well after each addition. Sift in the flour, salt, and baking powder, and then add coconut milk and vanilla extract.
• Continue mixing, then add the toasted coconut flakes and mix well.
• Using a clean mixer, beat the egg whites to soft peaks. Fold them into the batter; avoid overmixing and scraping down the sides of the mixing bowl as you mix.
• Divide the batter evenly between the greased cake pans. Tap the pans on the work surface to eliminate any large air bubbles.
• Bake at 325℉ (160℃) until a tester inserted into the center comes out clean, 30-35 minutes.
• Transfer to a wire rack, and allow to cool.

Cream Cheese Frosting

• Whisk the butter, cream cheese, powdered sugar, and vanilla until creamy. A mixer or hand mixer works well.