Preparation

1. Preheat the oven to 350°F (175°C). Grease your cake pans and add parchment circles, then lightly grease the parchment.
2. In a bowl, whisk together cake flour, baking powder, and salt. Set aside.
3. In a separate bowl, beat butter and sugar until light and fluffy, about 2 to 3 minutes.
4. Mix in coconut extract. Add coconut milk in a few additions, alternating with dry ingredients, mixing just until combined.
5. In a clean bowl, beat egg whites until soft peaks form, then continue until medium peaks form.
6. Gently fold egg whites into the batter in 2 to 3 additions using a spatula.

Baking

1. Divide batter evenly into cake pans and bake for 22 to 28 minutes, or until the top springs back when lightly touched.
2. Cool in pans for 10 minutes, then turn out onto a wire rack until completely cool.

Frosting

1. Beat cream cheese and butter until smooth, then gradually add powdered sugar.
2. Mix in coconut extract and salt, and adjust consistency with coconut milk if too thick.

Decorating

1. Frost the cooled cake layers with the cream cheese frosting.
2. Toast coconut flakes until golden, then press onto the cake for decoration.