Old-Fashioned Coconut Cake with Creamy Coconut Frosting

There’s something timeless about a coconut cake—fluffy, light, and sweet with a whisper of vanilla and the tropical essence of coconut woven through every layer. It’s the kind of dessert that feels luxurious and nostalgic all at once, like something your grandmother made for Easter or a treat you’d find at a southern bakery.

This homemade coconut cake delivers everything you crave: a moist, buttery crumb infused with coconut milk, tender layers that melt in your mouth, and a cloud of coconut cream cheese frosting that’s both tangy and sweet. Topped with a generous blanket of shredded coconut, it’s beautiful enough for a celebration but easy enough to make on a cozy Sunday afternoon. Every slice is like a taste of sunshine.

Why You’ll Love This Coconut Cake

It’s not dry. It’s not too sweet. And it’s not shy about coconut. This recipe strikes the perfect balance—moist but not soggy, rich but not overwhelming, and full of flavor from both coconut milk and extract. The frosting? Creamy, slightly tangy from the cream cheese, and loaded with coconut flavor. You can make this as a classic two-layer round cake, a sheet cake, or even cupcakes—it holds its shape beautifully and stays fresh for days. Whether you’re serving it at a holiday dinner, bridal shower, or just because coconut makes you happy, this cake delivers a wow factor with minimal fuss.

Ingredients

For the Coconut Cake

• 2½ cups all-purpose flour
• 2½ tsp baking powder
• ½ tsp baking soda
• ½ tsp salt
• 1 cup unsalted butter, softened
• 1¾ cups granulated sugar
• 4 large eggs
• 1 tsp vanilla extract
• 1 tsp coconut extract
• 1 cup canned coconut milk (unsweetened, full fat)
• ½ cup sour cream

For the Coconut Cream Cheese Frosting

• 8 oz cream cheese, softened
• ½ cup unsalted butter, softened
• 3½ cups powdered sugar
• 1 tsp vanilla extract
• 1 tsp coconut extract
• 2–3 tbsp coconut milk (for consistency)

For Assembly

• 2 cups sweetened shredded coconut

Instructions

1. Preheat oven to 350°F. Grease and flour two 9-inch round cake pans or line with parchment paper.
2. In a medium bowl, whisk together flour, baking powder, baking soda, and salt.
3. In a large bowl, beat butter and sugar together until light and fluffy, about 3–4 minutes.
4. Add eggs one at a time, beating well after each. Stir in vanilla and coconut extract.
5. In a small bowl, mix coconut milk and sour cream until smooth.
6. Alternate adding the dry ingredients and the coconut milk mixture into the butter mixture, beginning and ending with the dry. Mix until just combined—don’t overmix.
7. Divide the batter evenly between the pans and smooth the tops.
8. Bake for 25–30 minutes or until a toothpick inserted into the center comes out clean.
9. Let cakes cool in the pans for 10 minutes, then remove and cool completely on wire racks.
10. To make the frosting, beat cream cheese and butter together until smooth and fluffy.
11. Add powdered sugar gradually, beating until light. Stir in vanilla, coconut extract, and coconut milk to loosen as needed.
12. Once cakes are fully cool, level the tops if needed.
13. Spread frosting over the first layer, add the second cake, then frost the top and sides generously.
14. Press shredded coconut into the sides and sprinkle it all over the top of the cake.
15. Chill for 30 minutes before slicing to help the layers set, or serve immediately for a soft finish.

Tips for the Best Coconut Cake

Use full-fat canned coconut milk for the best flavor and texture. Room temperature ingredients help everything mix smoothly, especially the butter, eggs, and cream cheese. Don’t skip the sour cream—it keeps the cake moist and adds depth. Toast the shredded coconut if you want a nuttier flavor or more texture, or keep it untoasted for a classic fluffy finish. If making ahead, store the unfrosted cakes tightly wrapped and refrigerate for up to 2 days or freeze for up to 2 months. Frost right before serving for the best texture.

Variations

Use coconut flakes or coconut chips for a rustic topping. Add crushed pineapple to the frosting for a piña colada vibe. Bake in a 9×13 pan for a sheet cake version. Fold in mini white chocolate chips to the batter for a sweeter twist. Swap the frosting for a whipped coconut cream if you want a dairy-light version.

Storage

This cake keeps beautifully. Store covered in the fridge for up to 5 days. Let slices come to room temperature before eating for the fluffiest texture. You can also freeze individual slices tightly wrapped for up to 2 months.

Final Thoughts

This coconut cake is more than just dessert—it’s a memory, a tradition, a celebration in every bite. It’s the kind of cake that looks impressive but comes together with simple ingredients and easy steps. The flavor is rich and indulgent, but the texture is so soft and light, it never feels heavy. Whether you’re making it for a birthday, a Sunday dinner, or just because coconut is calling your name, you’ll find yourself going back for seconds.

Stick around—every visit tastes better than the last at The Buttered Bliss.