A homemade three layer Coconut Cake just might be the ultimate celebration dessert! Between the soft, fluffy cake layers, the decadent cream cheese frosting, and the layer of shredded coconut, it’s the perfect combination of flavor and texture.

We’re ending off my yearlong series on Layer Cakes with one of my favorites – a coconut cake! While coconut cake is often associated with warmer spring weathers, I’ll argue that it’s perfect any time of year. Not only is it delicious all year round, the outside even looks like snow! So let’s start a push to associate coconut cake with winter and Christmas, too!

Coconut cake has a way of stealing the spotlight at any gathering. There’s something irresistible about the combination of fluffy layers and creamy dreamy frosting. It’s the kind of cake that looks as impressive as it tastes, and you can bet it’s going to be the first dessert people reach for at the table.

Plus, there are so many variations on one simple cake that make it seem fresh and different every time! I’ll include some ideas below – like a chocolate ganache drizzle or filling with layers of fruit curd – but the possibilities are truly endless. Coconut may not be a neutral, but think of it as one – it’s like a more exciting version of vanilla, just waiting for your favorite flavors.

Ingredients and Substitutions

• Eggs: Make sure the eggs are at room temperature before adding them to the cake.
• Sugar
• Oil: Using vegetable oil, rather than butter, keeps this cake soft and fluffy for days, which is especially important since the cake has to be stored in the refrigerator. Use any neutral oil, like vegetable, canola, or sunflower oil.
• Coconut Milk: Use full fat, unsweetened coconut milk and make sure to shake it up well before adding it to the batter.
• Coconut Extract: Coconut extract really helps bring the coconut flavor, but if you’re not really into that much coconut, try making the cake with vanilla extract instead.
• Flour: To keep the cake gluten-free, substitute a 1:1 gluten-free baking mix containing xanthan gum.
• Baking Powder
• Baking Soda
• Salt
• Sweetened Shredded Coconut: You can also use sweetened flaked coconut – the only difference is the size of the shredded coconut particles.
• Butter: Use cool room temperature butter for the frosting – the butter should be around 65°F.
• Cream Cheese: Ditto the cream cheese; room temperature but not too soft!
• Confectioners Sugar
• Heavy Cream: You can also use additional coconut milk in the frosting instead of heavy cream.

How to Make Coconut Cake

1. Preheat and Prep: Preheat the oven to 350°F. Line three 8-inch round cake pans with parchment paper or grease and flour the pans.
2. Beat the Eggs: In a large bowl, beat together the eggs and sugar until light and fluffy.

3. Mix in Wet Ingredients: Add the oil, coconut milk, and coconut extract.

4. Add Dry Ingredients: Stir in the flour, baking powder, baking soda, and salt. Fold in the shredded coconut.

5. Bake: Divide the batter evenly among the three pans and smooth the tops with a spatula. Bake for 25-30 minutes. Let the cakes cool in the pans for 10 minutes before turning them out onto a wire rack to cool completely.

6. Make the Frosting: Beat the butter and cream cheese until soft and fluffy. Gradually add in the powdered sugar, followed by the heavy cream, coconut extract, and a pinch of salt. Beat on high speed for 2 to 3 minutes.

7. Assemble the Cake: Once the cakes are completely cool, spread a generous layer of frosting between each cake layer. Use the remaining frosting to cover the tops and sides of the cake. Press the shredded coconut onto the sides and top of the cake.

Benefits of Coconut Milk

While a typical cake may include milk or buttermilk, we’re using a whole can of coconut milk in this cake. Coconut milk is important not just for the flavor, but also for the texture and moisture retention. The coconut milk itself doesn’t carry a ton of coconut flavor when mixed into a cake; after all, that’s why we’re also adding some coconut extract. But it plays a huge role in the texture!

Have you ever had a really good coconut cake that practically melts in your mouth? That texture is thanks to the coconut milk, which we can explain with my favorite subject… kitchen chemistry!

Kitchen Chemistry

Coconut milk is higher in fat than whole milk. Fat shortens the gluten strands and prevents gluten development, resulting in an incredibly light and fluffy crumb. The added fat is from coconut oil, a saturated fat that remains solid at room temperature. Coconut fat melts around 80°F, remaining solid in a cake stored at room temperature or refrigerated, but quite literally melts in your mouth at body temperature.

Coconut Cake Variations

There are plenty of ways to put your own spin on this coconut cake. Here’s a few ideas to get you started:

• Lemon Coconut Cake: Add the zest of two lemons to the cake batter for a bright, citrusy twist and add homemade lemon curd between the layers.
• Pineapple Coconut Cake: Mix in about 1/2 cup of finely chopped, drained pineally to the the batter and spread a thin layer of pineapple preserves between the cake layers.
• Chocolate Coconut Cake: Add 1/2 cup of miniature chocolate chips to the batter and cover the cream cheese frosting with a chocolate glaze before pressing on the coconut flakes.
• Fruit Curd Filled Cake: Add a layer of cranberry curd, blueberry cardamom curd, raspberry curd, or blood orange curd between the layers, depending on season.
• Caramel Coconut Cake: Spoon homeade salted caramel between the cake layers and drizzle some down the sides of the frosted cake before adding the shredded coconut.
• Swap the Frosting: Lots of different types of frosting and glazes are delicious with coconut cake! Try orange cream cheese buttercream, chocolate buttercream, whipped cream frosting, caramel buttercream, marshmallow buttercream, meringue frosting, blackberry buttercream, or whipped cream frosting.
• Toast the Coconut: Toasting the coconut introduces all new flavors and textures – try pressing toasted coconut along the top and sides of the cake instead.

Tips and Tricks for the Best Coconut Layer Cake

1. Shake the Coconut Milk: Before adding the coconut milk to the batter, give the can a good shake or stir to combine the layer of thick cream on top and the liquid. This ensures even moisture and fat distribution throughout the cake batter.
2. Don’t Overmix: After adding the flour mixture to the wet ingredients, mix just until combined. Overmixing can lead to excess gluten formation, which can make the cake dry and tough.
3. Level the Layers: For perfectly level cake tops, use insulating baking strips.  No baking strips? If your cake layers come out a little domed, use a serrated knife to level them.
4. Chill the Cake Before Frosting: After the cakes have cooled to room temperature, wrap them in plastic wrap and chill them in the refrigerator for at least 30 minutes. Cold cake layers are easier to frost without crumbs getting into the frosting.
5. Size Adjustments: This recipe is written for three 8-inch cake pans. To bake in 6-inch pans, halve the ingredients. To bake in 9-inch pans, multiply each ingredient by 1.5.
6. Storage: The cake can be stored in an airtight container in the refrigerator for up to 3 days or frozen for up to 3 months. Let the cake come to room temperature before serving for the best texture.
7. Recommended Tools: Best Coconut Extract | Stand Mixer |  Beater Blades | 8 Inch Cake Pans | Parchment Rounds | Bake Even Strips | Cooling Racks | Offset Spatula | Cake Turntable

More Coconut Recipes

• Coconut Cream Pie
• Coconut Bundt Cake
• Chocolate Dipped Coconut Macaroons
• Coconut Panna Cotta with Blood Orange Curd