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The Ultimate Moist & Fluffy Southern Coconut Cake with Cream Cheese Frosting

Close-up of a moist slice of coconut cake layered with white frosting and topped with toasted coconut flakes.

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You deserve a truly special dessert. This recipe delivers a tender, incredibly moist, and fluffy coconut cake, layered with rich coconut cream cheese frosting. It is the best coconut cake for holidays, gatherings, or anytime you want a bakery-style cake at home.

Ingredients

Scale
  • 2 1/2 cups all-purpose flour
  • 1 1/2 cups granulated sugar
  • 1 tablespoon baking powder
  • 1/2 teaspoon salt
  • 1 cup unsalted butter, softened
  • 4 large eggs, room temperature
  • 1 cup whole milk
  • 1 teaspoon vanilla extract
  • 1/2 cup coconut extract
  • 1 cup sweetened shredded coconut, plus more for topping
  • 1/2 cup coconut milk (for soaking)
  • 8 ounces cream cheese, softened
  • 1/2 cup unsalted butter, softened (for frosting)
  • 4 cups powdered sugar, sifted
  • 1 teaspoon coconut extract (for frosting)

Instructions

  1. Preheat your oven to 350°F (175°C). Grease and flour three 8-inch round cake pans. Line the bottoms with parchment paper.
  2. In a large bowl, whisk together the flour, sugar, baking powder, and salt.
  3. Add the softened butter to the dry ingredients. Beat with an electric mixer on low speed until the mixture resembles coarse sand.
  4. In a separate bowl, whisk together the eggs, milk, vanilla extract, and coconut extract.
  5. Gradually add the wet ingredients to the dry ingredients, mixing on medium speed until just combined. Do not overmix.
  6. Gently fold in the 1 cup of shredded coconut.
  7. Divide the batter evenly among the prepared cake pans.
  8. Bake for 28 to 32 minutes, or until a wooden pick inserted into the center comes out clean.
  9. While the cakes cool slightly in the pans for 10 minutes, prepare the coconut milk soak. Poke holes all over the top of each warm cake layer using a skewer or fork. Brush or drizzle the 1/2 cup of coconut milk evenly over the tops of the warm layers. Let the cakes cool completely on wire racks.
  10. Prepare the cream cheese frosting: In a large bowl, beat the softened cream cheese and butter until smooth and creamy.
  11. Gradually add the powdered sugar, mixing on low speed until incorporated, then increase speed to medium-high and beat until fluffy.
  12. Beat in the 1 teaspoon of coconut extract.
  13. Once the cakes are completely cool, place the first layer on a serving plate. Spread a generous layer of frosting over the top. Sprinkle with extra shredded coconut.
  14. Top with the second layer, frost, and sprinkle with coconut. Repeat with the third layer.
  15. Frost the top and sides of the entire cake with the remaining cream cheese frosting. Cover the entire cake with additional shredded coconut, pressing gently so it adheres.

Notes

  • For an extra tropical flavor boost, toast the shredded coconut topping lightly in a dry skillet over medium heat until golden brown before using.
  • If you want a truly bakery-style cake at home, chill the frosted cake for 30 minutes before slicing.
  • This recipe creates an incredibly moist cake that stays fresh when covered at room temperature for up to three days.

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