
Every mouthful of this heavenly coconut cloud cake whisks you away to tropical bliss. It's airy, weightless, and packed with coconut goodness - this knockout treat has become my go-to celebration dessert that always wows my friends.
I whipped this up for my sister when she came back from her Hawaii trip. It reminded her of those gorgeous islands, and now everyone in the family begs for this cake whenever they need a little vacation feeling.
Ingredients
- All purpose flour: Creates just the right base for this soft cake without getting too dense
- Baking powder: Makes the cake puff up nicely for that dreamy, fluffy look
- Unsalted butter: Brings luxury while letting you add salt as needed
- Granulated sugar: Adds sweetness and helps trap air when mixed with butter
- Room temperature eggs: Mix in better for a smoother mix
- Vanilla extract: Sets up the background notes that make coconut shine
- Coconut extract: Boosts the tropical taste without going overboard
- Coconut milk: Adds real island flavor plus keeps everything moist and soft
- Shredded coconut: Makes a stunning outer coating and gives a lovely texture contrast
Step-by-Step Instructions
- Prepare Your Workspace:
- Heat your oven to 350°F and get your cake pans ready. I always put parchment circles down with a touch of cooking spray. Trust me, nothing's worse than a gorgeous cake that won't come out of the pan.
- Combine Dry Ingredients:
- Mix flour, baking powder and salt together well. Don't skip this part - it spreads the rising agents around so your cake layers puff up evenly.
- Create The Base:
- Whip butter and sugar for a full 3 4 minutes until it's super fluffy. Lots of folks hurry through this bit, but taking your time here creates tiny air pockets that make your cake so fluffy. It should get lighter and look almost creamy.
- Build The Batter:
- Drop in eggs one by one, mixing each one completely before adding another. This keeps the mix from separating and maintains all those air bubbles. Put both flavor extracts in now so they spread out nicely.
- Combine Wet and Dry Elements:
- Switch between adding dry stuff and coconut milk in small batches, starting and finishing with flour. This way everything blends well without overmixing. Your batter should look smooth but still hold its shape a bit.
- Bake To Perfection:
- Pour into your pans and bake until a toothpick comes out clean, about 25 30 minutes. The tops should bounce back when you touch them lightly and look golden around the edges.
- Cool Strategically:
- Let the cakes sit in their pans for exactly 10 minutes. This timing lets them firm up but still come out easily. Then move them to cooling racks so the bottoms don't get soggy.
- Assemble and Decorate:
- Once they're totally cool, add coconut frosting and stick shredded coconut all over the sides. Do this over a baking sheet to catch the extra coconut and make cleanup a breeze.

Coconut milk really is the magic ingredient here. I tried using regular milk once when I ran out, and while the cake was decent, it missed that special island richness that makes everyone love this cake. My grandma always told me a good coconut cake should make you feel like you're on vacation after just one bite.
Achieving Perfect Texture
That fluffy cloud texture comes from mixing things just right and measuring carefully. If you mix too much after adding flour, you'll get tough cake. Stop as soon as everything's combined for the fluffiest results. You can use cake flour instead of all purpose for an even softer feel, but I think the all purpose holds up better in layers.
Make Ahead Options
This cake actually gets better if you make it a day early. The coconut taste grows stronger overnight, and it gets even more tender. You can bake the layers up to two days before, wrap them tight in plastic once they're cool, and leave them at room temp until you're ready to frost. The finished cake stays good for up to four days in the fridge, but let it warm up before serving for the best taste and texture.
Flavor Variations
The classic coconut is amazing, but you can switch things up with other flavors too. Try putting lime curd between layers for a key lime coconut twist. Mix in a cup of chopped pineapple for a cake that tastes like a piña colada. If you love chocolate, try pouring some dark chocolate ganache over the frosted cake for a tasty contrast with the sweet coconut.

Common Questions
- → What makes this cake light and fluffy?
You'll get that cloud-like texture when you spend time beating the butter and sugar together really well. This puts lots of tiny air bubbles in your batter. The coconut milk also adds moisture without weighing things down.
- → Can I substitute coconut extract?
You can swap in vanilla or almond extract if you need to. Just know that you won't get that same island vibe without the coconut extract.
- → How do I toast shredded coconut?
Take your coconut flakes and put them on a flat baking sheet. Pop them in a 350°F oven for about 5-7 minutes. Give them a stir now and then so they turn golden all over.
- → Can I freeze the cake layers?
You can totally freeze the cake before adding frosting. They'll stay good for up to three months. Just wrap them up tight in plastic and stick them in an airtight container.
- → What's the best way to decorate this cake?
Cover it with coconut frosting or whipped cream, then press coconut flakes all over the sides and top. It'll look like a beautiful tropical snowball.