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Coconut Cake With Cream Cheese Frosting

Close up slice of coconut cake with cream cheese frosting on plate.

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This Coconut Cake With Cream Cheese Frosting uses real full-fat coconut milk and shredded coconut for authentic flavor without expensive extracts. The tangy cream cheese frosting pairs perfectly with the sweet tender crumb, creating a showstopper dessert that feels like a warm hug.

Ingredients

Scale
  • 2 1/2 cups all-purpose flour
  • 2 teaspoons baking powder
  • 1/2 teaspoon baking soda
  • 1/2 teaspoon salt
  • 1 cup unsalted butter, softened
  • 1 1/2 cups granulated sugar
  • 4 large eggs, room temperature
  • 1 teaspoon vanilla extract
  • 1 cup full-fat coconut milk (from a can, shaken well)
  • 1 cup shredded sweetened coconut
  • 8 ounces cream cheese, softened
  • 1/2 cup unsalted butter, softened
  • 4 cups powdered sugar
  • 1 teaspoon vanilla extract
  • 1-2 tablespoons milk or cream, if needed

Instructions

  1. Preheat oven to 350°F. Grease two 9-inch round cake pans and line bottoms with parchment paper.
  2. In a medium bowl, whisk together flour, baking powder, baking soda, and salt. Set aside.
  3. In a large bowl, beat softened butter and granulated sugar together until light and fluffy, about 3-4 minutes. Scrape down sides of bowl.
  4. Add eggs one at a time, beating well after each addition. Stir in vanilla.
  5. Add flour mixture in three additions, alternating with coconut milk, beginning and ending with flour. Mix just until combined. Fold in shredded coconut gently.
  6. Divide batter evenly between prepared pans. Bake for 30-35 minutes, or until a toothpick inserted in center comes out clean.
  7. Cool in pans for 10 minutes, then turn out onto wire racks to cool completely.
  8. For frosting: Beat softened cream cheese and butter together until smooth. Gradually add powdered sugar, beating on low speed until incorporated. Add vanilla and beat until fluffy. If too thick, add milk one tablespoon at a time.
  9. Place one cake layer on serving plate. Spread generous layer of frosting on top. Add second layer and frost top and sides. Optionally press toasted coconut flakes into sides.

Notes

Use full-fat coconut milk for best flavor and texture. Ensure cream cheese and butter are at room temperature for smooth frosting. Cake layers can be baked a day ahead and stored wrapped at room temperature. For a gluten-free version, use a 1:1 gluten-free baking blend. For dairy-free, use dairy-free cream cheese and plant-based butter.

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