For the Cake:

1. 1. Preheat your oven to 350°F (175°C). Grease two round cake pans with non-stick spray and line them with parchment paper.
2. 2. In a large bowl, whisk together the all-purpose flour and baking powder until well combined.
3. 3. In another bowl, beat the softened butter and granulated sugar together until light and fluffy (about 5 minutes).
4. 4. Add the eggs one at a time to the butter mixture, followed by the coconut milk. Mix until fully incorporated.
5. 5. Gradually fold in the dry ingredients into the wet mixture using a spatula.
6. 6. Stir in the shredded coconut until evenly distributed throughout the batter.
7. 7. Divide the batter between the prepared pans and bake for 25-30 minutes or until golden brown and a toothpick comes out clean when inserted into the center.
8. 8. Allow cakes to cool completely before frosting.

For the Frosting:

1. 1. In a mixing bowl, beat together softened cream cheese and powdered sugar until smooth.
2. 2. Once cakes are cooled, spread cream cheese frosting between layers and on top of the cake.