Name: Classic Coconut Layer Cake
Prep time: 60 min
Cook time: 30 min
Ingredients: 3 3/4 cups all-purpose flour (450g); 2 1/4 cups sugar (450g); 3 1/4 tsp baking powder; 1 tsp kosher salt; 3/4 cup unsalted butter, softened to room temperature (170g); 1 cup + 2 tbsp sour cream, at room temperature (254g); 3/4 cup full fat coconut milk, at room temperature or warmed (170g); 6 tbsp neutral oil (canola, vegetable, coconut, grapeseed, etc. will all work) (75g); 3 large eggs, at room temperature (150g); 1 tbsp vanilla extract; 8 oz cream cheese, softened slightly (226g); 1/2 cup butter, softened to room temperature (113g); 3.5-4 cups powdered sugar (340-454g); 2 tbsp sour cream (28g); 2 tbsp coconut milk (28g); 1/2 tsp vanilla extract; 1/4 tsp kosher salt; 2 cups sweetened shredded coconut (170g)

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This soft and fluffy coconut cake features tender layers of plush sour cream vanilla cake, a tangy cream cheese frosting and lots of toasted coconut to finish. If you’re looking for a very subtle coconut flavor but a crunchy toasted coconut exterior, you’ll love this cake!

A three layer slice of white cake with vanilla frosting and toasted coconut.

I’ve never been a huge fan of coconut cake–though conducting the coconut cake bake off did help me find a few that I enjoyed.

Recently, I went to Polo Bar for the first time, and trying their coconut cake changed everything. I realized my ideal coconut cake is actually just a really good vanilla cake that happens to have coconut on it. I love a subtle coconut flavor, but I don’t prefer artificial coconut extract, coconut shreds in the cake, or a super coconutty frosting. So, I set out to develop my dream coconut cake recipe based on my previous bake off research.

How I came up with my new favorite coconut cake recipe

My first idea was to adapt the vanilla cake from the crowd favorite recipe from the vanilla cake bake off, Cupcake Project. However, I suspect the extra fat in the coconut milk made the cake a bit too greasy since it’s already a very tender and delicate cake. The hue was also a bit more golden than I wanted for a coconut cake.

Half of a white cupcake next to half of a cupcake with a more yellow hue. — Left: Coconut cake adapted from Preppy Kitchen; right: coconut cake adapted from Cupcake Project.

My second try was to adapt Preppy Kitchen’s vanilla cake–one of my favorites from the vanilla cake bake off. Preppy Kitchen uses more flour, sugar, fat and eggs to the same amount of buttermilk as Cupcake Project for a paler, cakey, slightly closer-crumbed cake. However, I made a few changes:

Reverse creaming: I knew I wanted a velvety, tender and close crumb, so I borrowed the reverse creaming technique from Cupcake Project.
Reduced the egg: If you were to triple Preppy Kitchen’s recipe (to make a 3 layer, 8-inch cake), you’d need 4.5 eggs. I reduced this to 3 eggs total, so 1 egg per cake layer. In addition to making a round number of eggs, reducing the egg also lends a more delicate, crumbly texture to the cake (which I personally prefer). A higher ratio of egg can lead to a more structured and/or bouncy texture.
Increased the sour cream: To compensate for the moisture lost from the egg, I bumped up the sour cream by a few tablespoons. The extra fat helped make the crumb extra tender without being greasy!
Swapped some butter for oil: A classic trick I’ve learned from the bake offs is to use a combination of butter and oil for the best flavor and texture. I went with a 2/3 to 1/3 ratio of butter to oil.
Swapped coconut milk for whole milk: Since I wasn’t looking for a strong coconut flavor in the cake itself, I thought a bit of coconut milk would add the perfect subtle note.

This first round of changes yielded a cake that I was super happy with. Admittedly, the coconut flavor from the coconut milk was virtually non-existent, but that didn’t personally bother me. As I mentioned, my ideal is a vanilla cake with coconut on it!

In my next round of testing, I decided to try reducing the sugar just slightly. And I had the perfect cake base!

For the frosting, I adapted Sally’s Baking Addiction’s cream cheese frosting with a 2:1 cream cheese to butter. I added a few tablespoons of coconut milk for flavor, a few tablespoons of sour cream to amp up the tang, and an extra 1/2 cup of sugar to help thicken the consistency.

Recipe Ingredients

Ingredients laid out on the counter: flour, sugar, coconut milk, sour cream, oil, eggs, butter, salt, vanilla and baking powder.

Sour cream: Full fat sour cream is key to the plushness and richness of this recipe. You can always try subbing full-fat yogurt if that’s all you have, but this is a celebration cake–it deserves the full fat sour cream!
Neutral oil: I used vegetable oil, but canola, grapeseed, safflower, coconut oil or any neutral oil will all work. Unrefined coconut oil would actually work well in this case for a bit more coconut flavor.
Unsalted butter: I always use unsalted butter when baking to control the amount of salt in the final product.
Coconut milk: This is referring to full-fat coconut milk from the can, not a carton of coconut milk! I like the Aroy-D brand, but I’ve also used the Trader Joe’s brand successfully. It’s best to shake the can vigorously before opening it–depending on the brand, the coconut cream tends to separate from the water. If the coconut milk is chunky when you pour it out, just try to get an equal amount of coconut cream and coconut water. Heating the milk for 30 seconds in the microwave or on the stovetop will help melt the coconut cream back into the rest of the liquid smoothly.
Vanilla extract: A full tablespoon of vanilla extract goes into this cake for a very vanilla-forward cake. If you’re looking for more coconut flavor in the cake, you can try 1.5 tsp of vanilla extract and 1.5 tsp of coconut extract.
Sweetened shredded coconut: This is the classic topping for a coconut cake, and I prefer toasting it for flavor. However, you can also leave it untoasted for a chewier, pure white topping. You could, in theory, also use unsweetened shredded coconut if you prefer a less sweet covering for the cake. (Again, I would toast the unsweetened coconut if you go this route.)

Make the coconut cake

This cake makes a substantial 3 layer 8″ cake. If you’d like a smaller cake, you can make a single layer cake by reducing the ingredients by a third.

I highly recommend having an electric mixer on hand to make this cake. While you can attempt the reverse creaming method by hand, this will be way easier with an electric or stand mixer.

Step 1: In the bowl of a stand mixer, combine the flour, sugar, baking powder and salt.

Step 2: With the mixer on low speed, add the butter 1 tbsp at time until all the butter is incorporated. Continue mixing for 3 full minutes–the mixture should look sandy with tiny chunks of butter. This is the reverse creaming method and you’re aiming to coat all the flour molecules in butter at this point.

Step 3: In a separate bowl, whisk together the sour cream, coconut milk, oil, eggs and vanilla extract.

Step 4: Stream the sour cream mixture into the butter mixture and mix on medium speed for 1 minute until you have a silky batter.

Step 5: Divide batter equally between 3 prepared 8″ cake pans (around 565g per layer). Bake at 350 F for 30 minutes, or until fragrant with golden edges and the middle springs back under your finger.

Step 6: While the oven is still on, spread the sweetened shredded coconut on a baking sheet in an even layer. Bake for ~20 minutes, stirring every 5 minutes, or until the coconut is a light golden brown.

Step 7: Combine the cream cheese and butter in the bowl of a stand mixer and beat on low until combined. Gradually add the powdered sugar and beat until incorporated. Add the milk, sour cream, vanilla and salt and beat on medium speed for 3 minutes, or until pale white and very fluffy.

Step 8: Frost the cake and coat with the cooled toasted coconut.

Close up on a bite taken out of a slice of cake to see the tight crumb.

Storage and make ahead

Here are my recommendations on making the components ahead of time:

Bake the layers up to 2 weeks ahead of time: Like most cakes, I prefer making the cake layers a few days ahead of serving the cake. After baking, I’ll wrap them in plastic wrap and freeze for up to 2 weeks (I like this compostable plastic wrap). Because this is such a tender cake, freezing the layers ahead of time helps firm up the layers and reduces the crumbs when you frost the cake.
Toast the coconut a week ahead of time: Store any toasted coconut in an airtight container at room temperature until ready to frost the cake.
Make the frosting the day of: The day you plan to serve the cake, make the frosting right before assembling. The cake is best served the day it’s assembled!

Store any leftover cake in the fridge in an airtight container. If you’d like to store it for longer, you can wrap individual slices of cake in plastic wrap and freeze for up to a few weeks.

Classic Coconut Layer Cake

Erika Kwee

This dreamy coconut cake features incredibly tender layers of vanilla cake, a tangy sour cream cream cheese frosting and lots of toasted coconut to finish! The coconut flavor is very subtle, perfect for anyone who really just wants a vanilla cake topped in lots of coconut!

5 from 7 votes

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Prep Time 1

Cook Time 30

Course Dessert

Cuisine American

Servings 8″ 3 layer cake

Equipment

3 8" cake pans
Stand mixer or electric mixer

Ingredients

For the cake

3 3/4 cups all-purpose flour 450g
2 1/4 cups sugar 450g
3 1/4 tsp baking powder
1 tsp kosher salt
3/4 cup unsalted butter, softened to room temperature 170g
1 cup + 2 tbsp sour cream, at room temperature 254g
3/4 cup full fat coconut milk, at room temperature or warmed 170g
6 tbsp neutral oil (canola, vegetable, coconut, grapeseed, etc. will all work) 75g
3 large eggs, at room temperature 150g
1 tbsp vanilla extract

For the frosting

8 oz cream cheese, softened slightly 226g
1/2 cup butter, softened to room temperature 113g
3.5-4 cups powdered sugar 340-454g
2 tbsp sour cream 28g
2 tbsp coconut milk 28g
1/2 tsp vanilla extract
1/4 tsp kosher salt

For topping

2 cups sweetened shredded coconut 170g

Instructions

Make the cake

Preheat the oven to 350 F. Grease and line 3 8" cake pans with parchment.
In the bowl of a stand mixer fitted with a paddle attachment, combine 3 3/4 cups all-purpose flour, 2 1/4 cups sugar, 3 1/4 tsp baking powder and 1 tsp kosher salt.
With the mixer on low speed, add the 3/4 cup softened, unsalted butter, 1 tbsp at a time, until all the butter is incorporated. Continue mixing for at least one full minute–the mixture should look sandy with tiny chunks of butter.
Meanwhile, in a large measuring cup or medium mixing bowl, whisk together 1 cup + 2 tbsp sour cream, 3/4 cup full fat coconut milk, 6 tbsp neutral oil, 3 large eggs, and 1 tbsp vanilla extract. (If the coconut milk is chunky from the can, try microwaving it for 30 seconds to get smooth it out. If you forgot to bring your sour cream to room temperature, whisk the sour cream and coconut milk together, then microwave for 30 seconds to warm.)
Slowly stream the sour cream mixture into the dry ingredients. Once the mixture is fully incorporated, mix on medium speed for 1 minute until you have a smooth and silky batter.
Divide batter equally between the 3 prepared pans (around 565g per layer). Bake for 30 minutes, or until fragrant with golden edges and the middle springs back under your finger.

Toast the coconut

While the oven is still on at 350 F, spread 2 cups sweetened shredded coconut on a baking sheet in an even layer. Bake for 20 minutes, stirring every 5 minutes, or until the coconut is a light golden brown.

Make the frosting

Add 8 oz cream cheese, softened slightly and 1/2 cup butter, softened to room temperature to the bowl of a stand mixer and beat on low until combined, about 1 minute.
Gradually add 3 cups powdered sugar about 1/2 cup at a time on low speed until incorporated. Add 2 tbsp sour cream, 2 tbsp coconut milk, 1/2 tsp vanilla extract and 1/4 tsp kosher salt and beat on medium speed for about 3 minutes, or until pale white and fluffy. If the frosting still looks a little thinner than you'd like, add the remaining 1/2-1 cup powdered sugar.
To assemble the cake, frost the cooled cake layers with the cream cheese frosting. Use your hand to coat the entire cake in toasted shredded coconut–this will get messy, but do your best to pat it onto the sides!