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Coconut Cloud Cake

Coconut cloud cake is a fluffy white coconut layer cake baked until tender, then frosted thickly with coconut cream cheese frosting. The final toasted coconut coating clings to the sides for a snow-white, cloudlike finish with glistening toasted flakes.
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Prep Time 30 minutes
Cook Time 30 minutes
cooling 1 hour
Total Time 2 hours
Servings: 12 servings
Course: Dessert
Cuisine: American
Calories: 520
Ingredients Equipment Method Notes

Ingredients
  

For the coconut cake
  • 2.5 cup all-purpose flour
  • 2.5 tsp baking powder
  • 0.5 tsp salt
  • 1 lb butter softened (2 sticks)
  • 2 cup granulated sugar
  • 4 eggs large, at room temperature
  • 1 tsp vanilla extract
  • 1 tsp coconut extract
  • 1 cup coconut milk
  • 1 cup sweetened shredded coconut for the cake, folded in
For the coconut cream cheese frosting
  • 16 oz cream cheese softened
  • 1 lb butter softened (2 sticks)
  • 4 cup powdered sugar
  • 1 tsp coconut extract
  • 2 cup sweetened shredded coconut toasted, for coating

Equipment

  • 1 stand mixer
  • 1 sheet pan

Method
 

Bake the coconut cake layers
  1. Preheat the oven to 350°F and grease three 8-inch or two 9-inch round cake pans; line with parchment for easy release.
  2. In a bowl, whisk together the all-purpose flour, baking powder, and salt until evenly combined.
  3. Beat the butter and granulated sugar until very fluffy, with noticeably lighter color and texture.
  4. Add the eggs one at a time, mixing well after each addition.
  5. Mix in the vanilla extract and coconut extract until smooth and fragrant.
  6. Alternate adding the flour mixture and the coconut milk, mixing just until the batter is smooth.
  7. Fold in the sweetened shredded coconut until evenly distributed.
  8. Divide the batter evenly and bake for 25-30 minutes, until a toothpick comes out clean.
  9. Cool the cakes completely on a rack before frosting.
Make the coconut cream cheese frosting
  1. Beat the cream cheese and butter until completely smooth, then scrape the bowl as needed.
  2. Add the powdered sugar and coconut extract and beat until fluffy, thick, and spreadable.
Assemble and coat with toasted coconut
  1. Fill and frost the cake generously with the coconut cream cheese frosting, smoothing the top and sides.
  2. Immediately press toasted shredded coconut firmly all over the outside and top until fully coated, so the flakes adhere while the frosting is fresh.

Notes

For clean layers and a stable frosting, let the cake cool completely before assembling. Store covered in the refrigerator up to 4 days; freeze unfrosted cake layers up to 2 months (wrap tightly), and thaw overnight in the fridge before frosting. If you need a dairy-light swap, use a plant-based cream cheese substitute for the frosting while keeping the texture by fully softening both frosting fats.