Preheat the oven to 350°F (175°C).

In a bowl, mix together the flour, baking powder, and salt.

In another bowl, cream the room temperature unsalted butter and granulated sugar until light and fluffy.

Add the eggs, one at a time, mixing well after each addition.

Stir in the coconut milk and vanilla extract.

Gradually add the dry ingredients to the wet mixture, alternating with the coconut milk, and mix until just combined.

Pour the batter into a greased and floured cake pan.

Bake in the preheated oven for 30 minutes or until a toothpick comes out clean.

Let the cake cool completely.

For the frosting, beat the softened cream cheese and unsalted butter until smooth.

Gradually add the powdered sugar until combined.

Frost the cooled cake and sprinkle with shredded coconut.