Toasted Coconut Cake Recipe

Preheat oven to 325°F (160°C). Spread shredded coconut in an even layer on a rimmed baking sheet. Bake, stirring every 4–5 minutes, until coconut is golden brown and fragrant, 8–12 minutes total. Watch closely in the last minutes to prevent burning. Remove from oven and let cool completely on the sheet.

Prepare pans

Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans (or three 8-inch pans) and line bottoms with parchment. Set aside.

Combine dry ingredients

In a medium bowl, whisk together the all-purpose flour, baking powder, baking soda, and salt until evenly combined. Stir in the 1 cup fine grated coconut. Set aside.

Cream butter and sugar

In the bowl of a stand mixer fitted with the paddle (or using a hand mixer), beat 1 cup room-temperature butter and 1 3/4 cups granulated sugar on medium-high speed until pale, light, and fluffy, about 3–4 minutes. Scrape down the bowl as needed.

Add eggs and flavoring

Add the eggs one at a time, beating well and scraping the bowl after each addition. Mix in the 2 tsp vanilla extract. Batter may look slightly curdled — that's fine.

Combine wet and dry

With the mixer on low, add one-third of the dry ingredients, then half of the coconut milk, then another third of the dry, then the remaining coconut milk and buttermilk, finishing with the last third of the dry ingredients. Mix only until just combined; do not overmix. Fold in the grated coconut by hand with a spatula to distribute evenly.

Bake

Divide batter evenly between prepared pans and smooth tops. Bake at 350°F (175°C) until a toothpick inserted in the center comes out with a few moist crumbs, about 26–32 minutes for 9-inch pans (adjust for size). Rotate pans halfway through baking for even browning. Let cakes cool in pans on a wire rack for 10 minutes, then run a knife around edges, invert onto racks, remove parchment, and cool completely before frosting.

Combine 1/4 cup sugar and 1/4 cup water in a small saucepan. Bring to a simmer and stir until sugar dissolves. Remove from heat and stir in 2 tbsp rum if using. Let cool slightly. Brush warm or cooled cake layers lightly with syrup to add moisture and flavor.

Beat butter and cream cheese

In a stand mixer bowl, beat 1 cup room-temperature butter and 4 oz room-temperature cream cheese on medium speed until smooth and creamy, about 2 minutes. Scrape bowl.

Add powdered sugar

With mixer on low, add powdered sugar 1 cup at a time until incorporated. After all sugar is added, increase speed to medium-high and beat until light and fluffy, about 2–3 minutes. If frosting is too stiff, add 1 tsp milk at a time (or a touch more cream of coconut) to reach spreading consistency.

Flavor and adjust

Add 2 tsp vanilla, 1/2 tsp coconut extract (if using), 3 tbsp cream of coconut, and 1/4 tsp salt. Beat on low to combine, then medium until smooth. Taste and adjust coconut flavor or sweetness as desired.

If cake layers domed, level them with a serrated knife. Place one cake layer on a cake board or serving plate. If using, brush with simple syrup. Spread about 1/3 of the buttercream evenly over the first layer.

Place second layer on top, press gently to secure. If making three layers, repeat. Put a thin crumb coat (a light layer of frosting) over the entire cake to trap crumbs. Chill the cake 15–20 minutes to set the crumb coat.

Apply remaining frosting in an even final layer. Using a spatula or offset spatula, smooth the sides and top.

Press the toasted coconut onto the sides and scatter toasted coconut over the top, reserving a few tablespoons for decoration. Sprinkle extra grated coconut if desired. Chill the cake for 30 minutes to set the frosting before slicing, or serve at room temperature. Store leftovers covered in the refrigerator for up to 4 days (bring to room temperature before serving).