This Coconut Cloud Cake is a light and fluffy dessert with layers of moist cake, creamy coconut frosting, and a beautiful coating of sweetened shredded coconut. It has a tropical flair that makes it perfect for both everyday indulgence and special occasions.

Why You’ll Love This Recipe

I love this recipe because it strikes the perfect balance between elegance and simplicity. The coconut flavor shines through in every bite, thanks to the use of coconut milk and extract. It’s the kind of cake that feels indulgent without being too heavy. Plus, the creamy frosting and soft crumb make every slice feel like a treat from a bakery, but I can whip it up right in my kitchen.

Ingredients

(Here's a tip: Check out the full list of ingredients and measurements in the recipe card below.)

For the Cake:

all-purpose flour
baking powder
salt
unsalted butter, softened
granulated sugar
large eggs, room temperature
vanilla extract
coconut extract
coconut milk

For the Frosting:

cream cheese, softened
unsalted butter, softened
powdered sugar
coconut milk
coconut extract
sweetened shredded coconut

Directions

I start by preheating the oven to 350°F (175°C) and preparing two 9-inch round cake pans by greasing and flouring them or lining them with parchment paper.
In a medium bowl, I whisk together the flour, baking powder, and salt.
In a large bowl, I beat the butter and sugar until light and fluffy.
I add the eggs one at a time, beating well after each, then mix in the vanilla and coconut extracts.
I alternate adding the dry ingredients and the coconut milk, starting and ending with the flour mixture, and mix until just combined.
I divide the batter evenly between the prepared pans and smooth the tops.
I bake the cakes for 25 to 30 minutes, until a toothpick inserted in the center comes out clean.
After cooling the cakes in their pans for 10 minutes, I turn them out onto wire racks to cool completely.
For the frosting, I beat the cream cheese and butter together until smooth.
I gradually add the powdered sugar and beat until fluffy.
I mix in the coconut milk and coconut extract until well blended.
I place one cake layer on a serving plate and spread a generous layer of frosting on top.
I add the second cake layer and frost the top and sides of the cake.
I press sweetened shredded coconut onto the frosting to cover the entire cake.

Servings and Timing

Servings: 12
Prep Time: 30 minutes
Cook Time: 30 minutes
Total Time: 1 hour

Variations

Lemon Coconut Cake: I sometimes add lemon zest to the batter and swap the coconut milk in the frosting for lemon juice for a citrusy lift.
Chocolate Coconut Cake: I mix cocoa powder into the flour mixture for a chocolatey version that pairs beautifully with the coconut.
Pineapple Coconut Cake: I fold crushed pineapple into the batter for an extra burst of tropical flavor.

Storage/Reheating

Storage: I keep the cake in an airtight container at room temperature for up to 3 days, or refrigerate it to make it last up to a week.
Freezing: I wrap individual slices in plastic wrap and store them in a freezer-safe bag for up to 3 months.
Reheating: I let frozen slices thaw at room temperature or microwave them briefly until just warm.

FAQs

How can I make this cake gluten-free?

I use a gluten-free all-purpose flour blend that contains xanthan gum. I also double-check all other ingredients to ensure they’re gluten-free.

Can I use canned coconut milk?

Yes, I use canned full-fat coconut milk for the richest flavor. I always shake the can well before measuring.

What if I don’t have coconut extract?

When I don’t have coconut extract, I simply use more vanilla extract. The coconut flavor won’t be as strong, but it’s still delicious.

Can I make this cake in advance?

Definitely. I like to bake the cake layers a day ahead and frost the cake just before serving to keep it fresh.

How do I toast shredded coconut?

I spread it on a baking sheet and toast it in a 325°F (165°C) oven for about 5 to 10 minutes, stirring once or twice, until golden brown.

Conclusion

This Coconut Cloud Cake has become one of my go-to desserts when I want something soft, flavorful, and impressive. Whether I’m baking for a party, a family gathering, or just for fun, it never fails to bring smiles. The combination of moist cake, creamy frosting, and coconut crunch is pure delight.