Preheat your oven: Start by preheating your oven to 350°F (175°C) and greasing two 9-inch round cake pans with butter or non-stick spray to prevent sticking.
Prepare the dry ingredients: In a bowl, whisk together 2 3/4 cups cake flour, 1 tbsp baking powder, and 1/2 tsp salt. Set aside.
Cream the butter and sugar: In a larger mixing bowl, cream together 1 cup unsalted butter and 2 cups granulated sugar using an electric mixer until the mixture is light and fluffy, approximately 3-5 minutes.
Add the eggs: Beat in the 4 large eggs, one at a time, making sure each egg is fully incorporated before adding the next. Then, mix in 1 tsp vanilla extract and 1 tsp coconut extract.
Combine dry and wet ingredients: Gradually alternate adding the flour mixture and 1 cup coconut milk to the batter, starting with the flour and ending with it. Mix until just combined—do not overmix!
Fold in shredded coconut: Gently fold in 1 cup shredded coconut until evenly distributed throughout the batter.
Pour and bake: Divide the batter evenly between the prepared pans. Bake in the preheated oven for 25-30 minutes, or until a toothpick inserted in the center comes out clean.
Cool the cakes: Once baked, allow the cakes to cool in the pans for about 10 minutes before carefully transferring them to wire racks to cool completely before frosting.