Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans or line them with parchment paper.
Mix Dry Ingredients:
In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.
Cream Butter and Sugar:
In a large mixing bowl, beat the softened butter and granulated sugar together until light and fluffy, about 3-4 minutes.
Add Eggs:
Add the eggs one at a time, beating well after each addition. Scrape down the sides of the bowl as needed.
Combine Wet and Dry Ingredients:
Gradually add the dry ingredients to the butter mixture, alternating with the coconut milk. Begin and end with the dry ingredients. Mix until just combined. Stir in the vanilla extract and coconut extract (if using).
Bake:
Divide the batter evenly between the prepared pans. Bake for 25-30 minutes, or until a toothpick inserted into the center comes out clean.
Cool:
Let the cakes cool in the pans for 10 minutes, then turn them out onto a wire rack to cool completely.
For the Coconut Frosting:
Beat Butter:
In a large mixing bowl, beat the softened butter until creamy.
Add Sugar and Coconut Milk:
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