Southern Coconut Layer Cake with Coconut Cream Cheese Frosting (Holiday Dessert)

Why you’ll love it

• Coconut in every layer: coconut milk in the cake, a coconut soak, coconut frosting and shredded coconut outside.
• Soft and moist: cake flour, coconut milk and the soak keep the layers tender for days.
• A holiday showstopper: the snowy white coconut coating is festive and forgiving, so it always looks beautiful.

Quick facts

Ingredients

For the coconut cake

• Softened butter and flour, or baking spray, for the pans
• 2 3/4 cups (315 g) cake flour, spooned and leveled
• 2 1/2 tsp baking powder
• 1/2 tsp baking soda
• 3/4 tsp fine salt
• 3/4 cup (1 1/2 sticks / 170 g) unsalted butter, softened
• 1 1/2 cups (300 g) granulated sugar
• 4 large eggs, at room temperature
• 1 tsp pure vanilla extract
• 1 tsp coconut extract
• 1 cup (240 ml) canned full-fat coconut milk, well stirred, at room temperature
• 1/2 cup (40 g) sweetened shredded coconut, finely chopped

For the coconut soak

• 1/4 cup (60 ml) canned coconut milk
• 2 tbsp (25 g) granulated sugar

For the coconut cream cheese frosting

• 8 oz (225 g) full-fat brick cream cheese, softened
• 1/2 cup (1 stick / 113 g) unsalted butter, softened
• 4 cups (480 g) powdered sugar, sifted
• 1 tsp coconut extract
• 1 tsp pure vanilla extract
• 1 to 2 tbsp (15 to 30 ml) canned coconut milk, as needed
• 1/8 tsp fine salt

For the coating

• 2 1/2 cups (200 g) sweetened shredded coconut

Step-by-step method

1. Preheat and prepare the pans. Place a rack in the center of the oven and preheat to 350°F (175°C). Grease two 8-inch (20 cm) round cake pans with 2-inch (5 cm) sides, line the bottoms with parchment circles, grease the parchment and dust the pans with flour.

2. Mix the dry ingredients. In a medium bowl, whisk the cake flour, baking powder, baking soda and salt.

3. Cream the butter and sugar. In a large bowl with a hand mixer, or in a stand mixer with the paddle, beat the butter and sugar on medium-high speed 3 to 4 minutes, until pale and fluffy.

4. Add the eggs and flavorings. Beat in the eggs one at a time, scraping the bowl after each, then beat in the vanilla and coconut extracts.

5. Alternate the flour and coconut milk. On low speed, add one third of the flour mixture, then half the coconut milk, another third of the flour, the rest of the coconut milk and the last of the flour, mixing just until combined. Fold in the chopped shredded coconut with a spatula.

6. Bake. Divide the batter evenly between the pans and smooth the tops. Bake 30 to 35 minutes, until the cakes are light golden, spring back when pressed and a toothpick inserted in the center comes out clean.

7. Soak and cool. While the cakes bake, stir the 1/4 cup coconut milk and 2 tbsp sugar in a small saucepan over low heat just until the sugar dissolves. Cool the cakes in the pans 10 minutes, turn them out onto a wire rack, peel off the parchment and brush the tops with the warm soak. Let cool completely, about 1 hour.

8. Make the frosting. Beat the cream cheese and butter on medium speed 2 minutes, until smooth. Add the powdered sugar on low speed, then the coconut extract, vanilla and salt. Beat on medium-high 1 to 2 minutes, until light and fluffy, adding coconut milk 1 tablespoon at a time if it is too stiff to spread.

9. Assemble. Place one layer on a serving plate or cake turntable, soaked side up. Spread about 1 cup of frosting over it and sprinkle with 1/2 cup of the shredded coconut. Top with the second layer and cover the top and sides with the remaining frosting.

10. Coat with coconut. Sprinkle the remaining shredded coconut over the top and gently press it onto the sides with your palm until the whole cake is covered. Chill 30 minutes to set before slicing.

How to know it is done

The cake layers are done when the tops are pale golden and dry, the edges are just starting to pull away from the pans, the centers spring back right away when pressed lightly and a toothpick inserted in the center comes out clean or with a few moist crumbs. The internal temperature should be about 205 to 210°F (96 to 99°C). Coconut cake should stay light in color, so check it at 30 minutes and do not wait for it to turn deep brown.

Tips for the best result

• Use canned full-fat coconut milk, not coconut beverage from a carton, and stir it well before measuring.
• Bring the butter, eggs, coconut milk and cream cheese to room temperature so the batter and frosting stay smooth.
• Spoon and level the cake flour; packing it into the cup makes the cake dry.
• Chop the coconut that goes into the batter so the crumb stays fine and tender.
• Let the layers cool completely before frosting, or the frosting will melt and the coconut will slide.

Variations and substitutions

• Toasted coconut: toast the coating coconut on a sheet pan at 325°F (165°C) for 5 to 8 minutes, stirring often, for a golden, nutty finish.
• Three thin layers: bake in three 8-inch (20 cm) pans for 22 to 26 minutes for a taller, classic Southern look.
• Coconut sheet cake: bake in a greased 9×13-inch (23×33 cm) pan for 32 to 38 minutes and frost only the top.
• Lemon curd filling: spread 1/2 cup (160 g) lemon curd between the layers instead of frosting for a bright twist.
• Pineapple coconut: fill the layers with 1 cup (250 g) well-drained crushed pineapple mixed into 1/2 cup of the frosting.
• Unsweetened coconut: use unsweetened flaked coconut on the outside for a less sweet cake.

Make ahead

Bake the layers up to 2 days ahead. Cool them completely, wrap each one tightly in plastic wrap and keep them at room temperature, or freeze them wrapped for up to 2 months and thaw in the wrapping. The frosting can be made up to 3 days ahead and refrigerated; let it soften 30 minutes and beat briefly before using. The finished cake can be assembled the day before and refrigerated; many Southern cooks say coconut cake is even better on day two.

Storage and reheating

Because of the cream cheese frosting, store the cake covered in the refrigerator for up to 5 days. Let slices stand at room temperature 20 to 30 minutes before serving so the cake is soft and moist; it does not need reheating. To freeze, chill slices on a tray until the frosting is firm, wrap them individually and freeze for up to 2 months; thaw overnight in the refrigerator.