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Coconut Cloud Cake

Coconut cloud cake is a tall, snow-white coconut layer cake with a fluffy crumb and a thick cream cheese frosting. After frosting, the cake is immediately coated with toasted golden coconut flakes for a dramatic, glistening finish.
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Prep Time 30 minutes
Cook Time 30 minutes
cooling 1 hour
Total Time 2 hours
Servings: 12 servings
Course: Dessert
Cuisine: American
Calories: 620
Ingredients Equipment Method Notes

Ingredients
  

For the coconut cake
  • 2.5 cup all-purpose flour
  • 2.5 tsp baking powder
  • 0.5 tsp salt
  • 1 lb butter, softened
  • 2 cup granulated sugar
  • 4 eggs large
  • 1 tsp vanilla extract
  • 1 tsp coconut extract
  • 1 cup coconut milk
  • 1 cup sweetened shredded coconut folded in
For the coconut cream cheese frosting
  • 16 oz cream cheese, softened
  • 1 lb butter, softened
  • 4 cup powdered sugar
  • 1 tsp coconut extract
  • 2 cup sweetened shredded coconut toasted, for coating

Equipment

  • 1 sheet pan
  • 1 stand mixer

Method
 

Bake the coconut cake layers
  1. Preheat oven to 350°F, then grease three 8-inch (or two 9-inch) round cake pans and line with parchment for easy release.
  2. Beat softened butter and granulated sugar until very fluffy, creating a lighter batter base for a cloud-like crumb.
  3. Add eggs one at a time, mixing well after each addition to fully incorporate.
  4. Mix in vanilla extract and coconut extract until the batter looks smooth and evenly flavored.
  5. Alternately add the flour mixture and coconut milk, mixing just until combined to avoid overworking the batter.
  6. Fold in sweetened shredded coconut until evenly distributed.
  7. Divide batter between pans, then bake 25-30 minutes until a toothpick comes out clean.
  8. Cool the cake completely before frosting so the frosting stays smooth and doesn’t melt.
Make the coconut cream cheese frosting
  1. Beat softened cream cheese and butter until smooth and lump-free.
  2. Add powdered sugar and coconut extract, then beat until fluffy with a spreadable, billowy texture.
Frost and coat with toasted coconut
  1. Fill and frost the cake generously with coconut cream cheese frosting so there’s plenty of surface for the coating.
  2. Immediately press toasted coconut flakes firmly all over the outside and top of the cake until fully coated for the signature toasted, golden look.

Notes

Pro tip: If the coconut coating isn’t sticking, press gently but firmly right after frosting—heat and timing matter. Store the assembled cake covered in the refrigerator for up to 4 days (best texture within 2 days); freezing is not recommended due to the frosting’s texture. For a lighter twist, use reduced-fat cream cheese and butter (still beat until fluffy) while keeping the same powdered sugar amount for structure.