Preheat oven to 350°F (175°C). Grease and flour two 8-inch round cake pans (or one 9x13 pan) and line bottoms with parchment. Let cold ingredients come to room temperature (eggs, butter, coconut milk).

Dry ingredients

In a medium bowl whisk together 2.5 cups all-purpose flour, 2 tsp baking powder, 1/2 tsp baking soda and 3/4 tsp salt until evenly combined. Set aside.

Cream butter and sugar

In the bowl of a stand mixer fitted with the paddle attachment (or using a hand mixer), beat 1 cup room-temperature unsalted butter and 1.75 cups granulated sugar on medium-high speed for 3–4 minutes until light, fluffy and pale in color.

Add eggs and vanilla

Reduce mixer speed to low and add 4 large eggs one at a time, mixing briefly after each addition until incorporated. Scrape down the bowl between additions. Mix in 2 tsp vanilla extract.

Combine wet and dry

With mixer on low, add the dry ingredients in three additions, alternating with the coconut milk and buttermilk: add 1/3 of the dry mixture, then 1/2 cup coconut milk + 1 tbsp buttermilk (or the prepared buttermilk), then another 1/3 dry, then remaining coconut milk + remaining buttermilk, finishing with the last dry. This keeps the batter smooth. Add 2 tbsp vegetable oil with the last addition to help keep the cake moist. Scrape down the bowl and fold in 1 cup shredded or grated coconut by hand with a spatula until evenly distributed.

Bake

Divide batter evenly between prepared pans and smooth the tops. Bake in preheated 350°F oven for 22–28 minutes for 8-inch rounds (or 30–35 minutes for 9x13) until a toothpick inserted into center comes out with a few moist crumbs and the cakes spring back when lightly pressed.

Cool

Let cakes cool in the pans on a wire rack for 10–15 minutes. Run a thin knife around the edges, invert onto racks, remove parchment, and cool completely before glazing or stacking (at least 1 hour).

Coconut Glaze & Garnish

Prepare glaze

In a small bowl whisk together 3/4 cup sweetened condensed milk and 2 tablespoons coconut milk until smooth. If glaze is too thick to pour, add an additional teaspoon of coconut milk at a time until it reaches a pourable consistency.

Toast coconut

While cake bakes or cools, toast 1/2 cup shredded coconut in a dry skillet over medium heat, stirring frequently, 3–5 minutes until golden and fragrant. Transfer to a plate to stop cooking. Optionally toast 1/4 cup flaked coconut or chips for more texture.

Glaze cake

Place cooled cake layer on a serving plate. Pour half of the glaze over the top and spread gently to the edges, allowing some to drip down. If using two layers, stack the second layer on top and pour remaining glaze over the top layer. Sprinkle toasted shredded coconut and toasted flakes around the top and sides as desired.

House-made Coconut Ice Cream (no-churn)

Chill and whip

Chill a mixing bowl and beaters for 10 minutes in the freezer if desired. Open a 14 oz can of chilled full-fat coconut cream; scoop the thickened cream into a bowl (reserve any thin liquid for smoothies). Beat the coconut cream with 3/4 cup sweetened condensed milk, 1 tsp vanilla extract and a pinch of salt on medium-high until slightly thickened, about 2–3 minutes. The mixture will be creamy but not fluffy like dairy-based whipped cream.

Fold in coconut

Fold in 1/4 cup toasted shredded coconut until evenly distributed.

Freeze

Transfer mixture to a loaf pan or airtight container, cover tightly, and freeze for at least 6 hours or preferably overnight until firm.

Serve

Scoop frozen coconut ice cream and serve alongside slices of coconut cake. If ice cream is too hard, let sit 5–10 minutes at room temperature before scooping.