Instructions

1. Preheat oven to 350 degrees.
2. Cream butter and sugar until light and fluffy. Add in the egg yolks, coconut milk, and coconut extract and mix until combined. Add in half the flour, the baking powder, and salt, and stir to combine.
3. Beat the egg whites into stiff peaks, then lightly fold in to the batter. Then, fold in the rest of the flour and the white chocolate chips (if using), until combined.
4. Pour batter into parchment-lined cake tins (either 2 9-inch rounds, or 3 6-inch rounds), and bake for 25-30 minutes, until the top of the cake springs back when pressed lightly.
5. For the frosting: Beat the cream cheese and butter in a mixer bowl until light and fluffy. Gradually add the confectioners’ sugar, one cup at a time. Beat in the salt and coconut extract. Continue beating until mixture is smooth and spreadable. Add additional confectioners’ sugar if necessary to thicken the frosting.
6. Spread coconut frosting between layers of the cake and around the sides. Cover the frosted cake with shredded coconut as desired.