This extra moist Coconut Sheet Cake is packed full of coconut flavor and topped with a thick coconut cream cheese frosting and a layer of toasted coconut. Easy to make and perfect for spring parties, holidays, or any time you’re craving something tropical! 

This Coconut Sheet Cake is a spin-off of one of my most-loved recipes: my Coconut Bundt Cake. I spent years testing that cake, tweaking the ingredients and proportions to pack in as much real coconut flavor as possible — and this sheet cake brings all that same flavor and moisture, with an easier, no-fuss presentation.

If you’ve made the bundt cake before, you already know how rich and coconutty it is. But this version might be even more crave-worthy, thanks to a thick layer of coconut cream cheese frosting and a sprinkle of toasted coconut on top. It’s a simple 9×13 sheet cake, but there’s nothing basic about the flavor.

What makes it so good? Coconut milk — and lots of it. Full-fat coconut milk is the backbone of this cake, giving it an incredibly soft, almost plush crumb that stays moist for days. Shredded coconut folded into the batter adds texture, and a splash of coconut extract takes the flavor to the next level without tasting artificial.

And because it’s a sheet cake, it’s the kind of dessert you can bring anywhere. No layering, no leveling, no decorating — just bake, cool, frost, and sprinkle with toasted coconut. It’s been my go-to spring and summer cake for years now, and it never sticks around long.

Ingredients and Substitutions

• Butter: Use unsalted butter at cool room temperature (around 65°F).
• Granulated Sugar
• Eggs: Eggs should also be at room temperature. For an egg-free option, use hydrate chia seeds, with 1 tablespoon of chia seeds soaked in 2.5 tablespoons of water as a replacement for each egg.
• Coconut Milk: Use full-fat, unsweetened canned coconut milk. Don’t use coconut cream (it’s too thick). 
• Baking Powder
• Salt
• Vanilla Extract
• Coconut Extract: This helps boost the coconut flavor; a little goes a long way! Use real coconut extract, not imitation, for the best flavor.
• All-Purpose Flour: For a gluten-free cake, use a 1:1 gluten-free all purpose baking mix.
• Shredded Coconut: Sweetened coconut shreds or flakes work for this recipe.
• Cream Cheese: Make sure the cream cheese is at room temperature before making the frosting.
• Confectioners’ Sugar

How to Make Coconut Sheet Cake

1. Cream the Butter: Using an electric mixer, crema the butter and sugar until light and fluffy. Add the eggs, followed by the coconut and vanilla extracts.

2. Mix Dry Ingredients: Whisk the baking powder, salt, and flour in a separate bowl.
3. Alternate Wet and Dry Ingredients: Add half the dry ingredients to the butter and mix to combine. Add the coconut milk, mix well, and add the rest of the dry ingredients.

4. Fold in Coconut: Gently fold the shredded coconut into the batter.

5. Bake the Cake: Spread the batter in a greased 9×13-inch pan and bake until a toothpick comes out with a moist crumb.

5. Make the Frosting: Beat the butter and cream cheese using an electric mixer. Add the powdered sugar, salt, coconut extract, and coconut milk, whipping on high speed until well combined. Fold in the shredded coconut and spread on the cake. Top the frosted cake with toasted coconut.

Baking with Coconut Milk

Using full-fat coconut milk in this cake adds more than just flavor – it also changes the structure of the crumb. Coconut milk is high in saturated fat, which impacts both moisture and tenderness. It acts similar to whole milk or heavy cream in baking, but with the bonus of natural coconut flavor!

Kitchen Chemistry

Fat molecules from the coconut milk coat the flour proteins and reduce gluten formation, which slows down gluten development when the batter is mixed and keeps the cake soft and fluffy. This is especially important in cakes, where overmixing can lead to a dense or gummy texture.

But there’s more to it than just keeping a cake soft and fluffy. Coconut milk also contributes extra moisture, which keeps the cake soft for days – no dry leftovers here! Fat acts as a moisture-locking agent. It creates a barrier that helps slow down water loss during baking and storage. Using full-fat coconut milk gives this cake the classic rich, silky texture you expect from coconut cake, so use the full-fat, canned version of coconut milk, not refrigerated coconut milk from a carton, which often includes stabilizers that will impact the final texture of the cake.

Toasting Coconut

Once the cake is baked and cooled, it’s time for the finishing touches: a thick layer of coconut cream cheese frosting and a generous sprinkle of toasted coconut. The frosting adds a rich, tangy contrast to the soft, sweet cake — but it’s the toasted coconut that really seals the deal.

There are a few different ways to toast coconut:

• Stovetop Method: Add shredded coconut to a skillet over medium-low heat. Stir constantly for about 5 minutes, or until it turns golden brown. This method gives you lots of control, but you’ll need to stay at the stove the whole time.
• Microwave Method: Place coconut in a microwave-safe bowl and heat in 1-minute increments for up to 5 minutes, stirring in between. You’ll get a nice golden color, but the texture stays softer — great for those who prefer less crunch.
• Oven Method: Spread the coconut evenly on a baking sheet and bake at 350°F for 6 to 8 minutes, stirring once or twice. This is the method I usually go with — since the oven’s already on for the cake, I just slide the coconut in after the cake comes out and let it toast while the cake cools.

Use whichever method works best for you — just keep an eye on it! Toasted coconut can go from golden to burnt in a flash.

Tips and Tricks for the Best Coconut Sheet Cake

1. Cool the Cake Completely: Let the cake cool fully before adding the frosting. Even a slightly warm cake will cause the cream cheese frosting to melt and slide off.
2. Cool the Toasted Coconut: Similar to the cake, warm toasted coconut will also melt the frosting. Toast the coconut in advance or as soon as the cake comes out of the oven and cools so it has plenty of time to cool.
3. Chill the Frosting: If your frosting feels too soft or loose, chill it for 10-15 minutes before spreading to help it hold its shape.
4. Store in the Fridge: Because of the cream cheese in the frosting, the cake should be refrigerated if not eaten the same day. Leftovers can also be frozen for up to 3 months.
5. Serve at Room Temperature: Take the cake out of the refrigerator 30-45 minutes before serving to bring it up to room temperature for the best texture and flavor.
6. Recommended Tools: Baking Pan | Stand Mixer | Offset Spatula | Coconut Extract

More Coconut Recipes:

• Coconut Bundt Cake
• Coconut Cream Pie
• Coconut Layer Cake
• Chocolate Dipped Coconut Macaroons
• Coconut Panna Cotta