Preheat your oven to 350°F (175°C).

Grease and flour your two round cake pans.

In a large bowl, whisk together the flour, sugar, baking powder, and salt.

In another bowl, beat the softened butter until creamy, then gradually add the sugar until light and fluffy.

Add the coconut milk, eggs, and vanilla extract to the butter mixture. Beat until fully combined.

Gradually add the dry ingredients to the wet ingredients, mixing until just combined.

Gently fold in the shredded coconut using a spatula.

Divide the batter evenly between the prepared pans and bake for 25 to 30 minutes.

Let the cakes cool in the pans for 10 minutes before transferring them to a wire rack to cool completely.