Preheat your oven to 350°F (175°C) and grease two 9-inch round cake pans with a little butter, then line the bottoms with parchment paper.

In a large bowl, cream together the butter and sugar for 3-5 minutes until light and fluffy. Add eggs one at a time, mixing well after each addition. In another bowl, whisk together the flour, baking powder, and salt, then gradually mix into the wet mixture, followed by the coconut milk and extracts until smooth.

Divide the batter evenly between the pans and bake for 25-30 minutes. Use a toothpick to check for doneness.

Let the cakes cool in the pans for 10 minutes before transferring to a wire rack to cool completely.

In a mixing bowl, beat together cream cheese and butter until fluffy. Gradually add powdered sugar until smooth, then blend in coconut extract and heavy cream to desired consistency.

Once the cakes are cool, level off the tops if necessary, spread frosting between layers and on top of the cake.

Press shredded coconut around the sides and sprinkle toasted coconut on top.