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Ultimate Moist & Fluffy Southern Coconut Layer Cake with Cream Cheese Frosting

Close-up of a moist slice of three-layer coconut cake filled and frosted with white cream and topped with toasted coconut flakes.

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I am happy you are here. This recipe delivers the bakery-style coconut cake you want: incredibly moist, light, and fluffy layers topped with rich cream cheese frosting. It is a show-stopping dessert perfect for any celebration.

Ingredients

Scale
  • 1 3/4 cups all-purpose flour
  • 1 3/4 cups granulated sugar
  • 1 tablespoon baking powder
  • 1/2 teaspoon salt
  • 1 cup unsalted butter, softened
  • 4 large egg whites, room temperature
  • 1 cup whole milk, room temperature
  • 1/4 cup coconut oil, melted and cooled slightly
  • 2 teaspoons pure vanilla extract
  • 1 teaspoon coconut extract
  • 1 cup sweetened flaked coconut, plus more for coating
  • 1/2 cup unsweetened coconut milk (for soaking syrup)
  • 1/4 cup granulated sugar (for soaking syrup)
  • 8 ounces cream cheese, softened
  • 1/2 cup unsalted butter, softened
  • 4 cups powdered sugar, sifted
  • 1 teaspoon vanilla extract
  • 1/4 teaspoon salt

Instructions

  1. Preheat your oven to 350°F (175°C). Grease and flour three 8-inch round cake pans. Line the bottoms with parchment paper circles.
  2. In a large bowl, whisk together the flour, 1 3/4 cups sugar, baking powder, and salt.
  3. Add the softened butter to the dry ingredients. Beat with an electric mixer on low speed until the mixture resembles coarse sand.
  4. In a separate bowl, whisk together the egg whites, whole milk, melted coconut oil, vanilla extract, and coconut extract.
  5. Gradually add the wet ingredients to the dry ingredients, mixing on low speed until just combined. Do not overmix.
  6. Gently fold in the 1 cup of flaked coconut.
  7. Divide the batter evenly among the prepared cake pans. Bake for 28 to 32 minutes, or until a toothpick inserted into the center comes out clean.
  8. While the cakes cool slightly, prepare the soaking syrup: In a small saucepan, combine the 1/2 cup coconut milk and 1/4 cup sugar. Heat gently until the sugar dissolves. Do not boil.
  9. Once the cakes are slightly warm, poke holes all over the tops using a skewer or fork. Brush the warm coconut milk syrup evenly over all three layers. Let the cakes cool completely on wire racks.
  10. Prepare the cream cheese frosting: In a large bowl, beat the softened cream cheese and 1/2 cup butter until smooth. Gradually add the powdered sugar, mixing until combined. Beat in the vanilla extract and salt until the frosting is light and fluffy.
  11. Place one cooled cake layer on a serving plate. Spread about 1 cup of frosting evenly over the top. Sprinkle with flaked coconut. Repeat with the second layer.
  12. Place the final layer on top. Frost the top and sides of the entire cake with the remaining cream cheese frosting.
  13. Press additional flaked coconut onto the top and sides of the cake for a bakery-style finish.

Notes

  • For maximum coconut flavor, lightly toast some of the flaked coconut before using it as a garnish. Spread it on a baking sheet and bake at 325°F (160°C) for 5-8 minutes, watching closely to prevent burning.
  • Using room temperature milk and egg whites helps create a more even batter, leading to a fluffier cake crumb.
  • If you want an Old-Fashioned style, use a traditional cooked frosting instead of cream cheese, but the cream cheese pairing is excellent for moisture.

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