Step 1: Preheat your oven to 350°F (175°C).
Step 2: Grease and flour two 9-inch round cake pans.
Step 3: In a large mixing bowl, cream together the softened butter and white sugar until light and fluffy, about 3-4 minutes.
Step 4: Add the eggs one at a time, mixing well after each addition, then pour in the cream of coconut and mix until fully combined.
Step 5: In a separate bowl, whisk together the flour, baking powder, baking soda, and salt.
Step 6: Gradually add the dry ingredients to the wet mixture, alternating with the buttermilk, starting and ending with the flour mixture. Mix until just combined.
Step 7: Stir in the coconut extract.
Step 8: Divide the batter evenly between the prepared cake pans and bake for 25-30 minutes.
Step 9: Cool the cakes in the pans for about 10 minutes, then transfer to a cooling rack to cool completely.
Step 10: For the frosting, beat the softened cream cheese and butter until smooth, add coconut extract, then gradually mix in powdered sugar, adjusting with milk as needed.
Step 11: Once the cakes are cool, frost the top of one layer, place the second layer on top, and frost the top and sides.
Step 12: Sprinkle toasted coconut over the top and sides of the frosted cake.
