Preheat the oven to 350°F. In a large bowl combine the dry ingredients (flour, baking powder, and salt).

In a separate large bowl combine the granulated sugar, 6 Tbsp softened butter, and cooking oil. Blend with a hand mixer until well combined. Now add in the eggs, 1 tsp vanilla extract, 3/4 tsp coconut extract, and coconut milk. Blend until smooth.

Add the dry ingredients to the bowl of wet ingredients. I sifted the dry ingredients into the wet to break up any lumps, resulting in a lighter cake crumb. Blend the dry and wet ingredients together until just combined.

Fold in 1/2 cup of sweetened coconut flakes into the batter.

Generously grease the bottom and sides of two 8-inch cake pans with butter. Line the bottoms with parchment paper. Divide the batter evenly between both pans.

Place both cake pans in the preheated oven and bake for 28-30 minutes or until the tops are golden brown and a toothpick inserted comes out clean. Allow the cakes to cool for 10 minutes, then remove them from the pans and place on a wire rack to cool completely.

While the cakes are cooling, make the frosting. Blend the softened cream cheese and 6 Tbsp of softened butter until smooth. Add the powdered sugar, one cup at a time, along with 1 tsp of vanilla extract and 1 tsp of coconut extract. Blend until smooth.

Once the cakes are completely cooled, trim the domed tops to create a flat surface.

Place one cake on a stand and spread about 1 cup of frosting on top, from the center outwards.

Add the second layer of cake and spread 1 cup of frosting on top. Allow some of the frosting to run over the sides.

Spread the remaining frosting around the sides and top. Garnish with the rest of the sweetened coconut flakes, pressing them in gently to adhere.