1: Welcome to our delicious coconut cake recipe! Follow these simple steps for a moist and flavorful dessert that will impress your friends and family.

2: Begin by preheating your oven to 350°F and greasing a 9-inch round cake pan. Gather all your ingredients before starting the baking process.

3: In a large mixing bowl, cream together butter and sugar until light and fluffy. Add in eggs one at a time, incorporating each one fully before adding the next.

4: Next, stir in vanilla extract and coconut milk. Gradually add in flour, baking powder, and salt until a smooth batter forms. Be careful not to overmix.

5: Fold in shredded coconut until evenly distributed throughout the batter. Pour the mixture into the prepared cake pan and smooth the top with a spatula.

6: Bake for 30-35 minutes, or until a toothpick inserted into the center comes out clean. Let the cake cool in the pan for 10 minutes before transferring to a wire rack.

7: For the frosting, beat together cream cheese, butter, powdered sugar, and coconut extract until smooth. Spread over the cooled cake and top with toasted coconut flakes.

8: Slice and serve this delectable coconut cake at your next gathering or special occasion. Your guests will be begging for seconds of this irresistible dessert.

9: Enjoy the tropical flavors of coconut in every bite of this moist and decadent cake. Follow our step-by-step guide for a foolproof baking experience.