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Ingredients
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Cake batter
Peach filling & topping
Coconut-lime glaze (optional)
Method
Cake batter
Prep
Preheat oven to 350°F (180°C). Grease and flour a 9-inch (23 cm) round cake pan or line with parchment paper. Bring eggs and milk to room temperature (about 15 minutes) for better mixing.
Dry ingredients
In a medium bowl whisk together 2.25 cups all-purpose flour, 2 tsp baking powder and 1/2 tsp fine salt until evenly distributed.
Cream butter and sugar
In a large bowl or stand mixer fitted with paddle attachment, beat 1/2 cup softened unsalted butter and 1 cup granulated sugar on medium speed until light and fluffy, about 2–3 minutes.
Add oil and eggs
With mixer on low, beat in 1/4 cup neutral vegetable oil. Add eggs one at a time, mixing 20–30 seconds after each addition until incorporated.
Combine wet ingredients
Stir together 3/4 cup whole milk, 1/2 cup plain Greek yogurt, 1 tsp vanilla extract and 1 tbsp lime zest. With mixer on low, alternate adding the dry ingredient mixture and the milk-yogurt mixture to the butter-egg mixture in three additions, beginning and ending with the dry ingredients. Mix just until combined; do not overmix.
Bake
Pour batter into prepared 9-inch pan, smooth the top with a spatula. Bake in preheated oven 28–35 minutes, until a toothpick inserted in center comes out with a few moist crumbs and top is golden. Remove from oven and allow to cool in pan 10 minutes, then turn out onto wire rack to cool completely while you prepare the peach filling and glaze.
Peach filling & topping
Prepare peaches
While cake bakes or cools, slice 4 medium ripe peaches into 1/4-inch slices. Place slices in a bowl and toss with 1 tbsp fresh lime juice to preserve color.
Cook filling
In a medium skillet over medium heat, melt 1 tbsp unsalted butter. Add the lime-tossed peach slices, 1/4 cup granulated sugar and 1 tsp cornstarch (dissolved in a splash of water if needed). Cook, stirring gently, 3–5 minutes until peaches are slightly softened and syrup thickens. If you prefer firmer peaches use only 2–3 minutes. Remove from heat and let cool to room temperature.
Caramelize (optional)
If you want a deeper flavor, sprinkle 1 tbsp light brown sugar over the peach slices in the skillet and let it cook 1–2 minutes until it dissolves and lightly caramelizes, stirring gently. Remove from heat and cool.
Assemble peaches on cake
When cake is completely cool, spoon the cooled peach mixture evenly over the top, arranging slices decoratively if desired. Spoon any thickened syrup over the peaches.
Coconut-lime glaze & finishing
Make glaze
If using glaze, whisk together 1 cup powdered sugar, 2 tbsp full-fat coconut milk, 1 tsp fresh lime juice and 1/4 tsp vanilla until smooth and pourable. Add an extra teaspoon of coconut milk if too thick.
Glaze the cake
Drizzle or spread the coconut-lime glaze over the peach-topped cake, letting some drip down the sides if desired.
Garnish and chill
Sprinkle the toasted shredded coconut evenly over the top. For best texture and to let flavors meld, refrigerate the cake 30–60 minutes before serving. Bring to slightly below room temperature before slicing for best flavor (about 10–15 minutes out of fridge).