This coconut cake with coconut cream cheese frosting is one of those recipes that makes people stop mid-conversation to ask for the recipe. It’s two tall layers of tender, coconut-infused sponge sandwiched and smothered in a tangy, creamy frosting that balances the sweetness perfectly.
I use both coconut milk and coconut essence in the batter so the coconut flavour isn’t just a suggestion — it’s front and centre. The reverse-creaming method (adding butter to the dry ingredients first) gives you an incredibly fine, velvety crumb that stays moist for days.
The cream cheese frosting is the real star. It’s rich enough to feel indulgent but the tang from the cream cheese keeps it from being cloyingly sweet. A generous handful of desiccated coconut pressed onto the outside gives you that classic bakery look with almost no effort.
Whether you’re making this for a birthday, a holiday table, or simply because it’s Saturday and you deserve cake — this coconut cake delivers every single time.
Coconut Cake With Coconut Cream Cheese Frosting
Ingredients
Coconut Cake Ingredients
- 5 large egg whites (5.3oz)
- ½ cup milk whole milk
- 1 tablespoon coconut essence or coconut extract
- 3 cups all-purpose flour plain flour
- 2 ½ cups granulated white sugar
- 1 tablespoon baking powder
- ½ teaspoon salt fine salt
- 1 cup butter 2 sticks ; unsalted, room temperature
- 1 cup coconut milk unsweetened, canned or carton
- 1 cup desiccated coconut for decorating
Coconut Cream Cheese Frosting Ingredients
- 8 oz cream cheese (227g) ; full-fat, room temperature
- ½ cup butter 1 stick ; unsalted, room temperature
- 4 cups icing sugar powdered sugar, sifted
- 1-3 tablespoons coconut milk
- 1 tablespoon coconut essence or coconut extract
Instructions
Coconut Cake Instructions
- Preheat oven to 350°F / 180°C (160°C fan-forced). Grease and flour two 9-inch (23cm) round cake tins and line the bases with parchment paper.
- Whisk together egg whites, milk (not coconut milk) and coconut essence.
- In another bowl (or in a stand mixer bowl if you have one), combine flour, sugar, baking powder and salt.
- Add the butter and coconut milk and combine at low speed until all the dry ingredients are moist. Turn the speed up to medium and beat together until light and fluffy, for about 2 minutes.
- Add the egg white mixture 1/3 at a time, beating just long enough between additions to combine.
- Divide the batter evenly between the two prepared pans. Bake at 350°F / 180°C (160°C fan-forced) for 35–40 minutes, until a skewer inserted into the centre comes out clean. Allow the cakes to cool in the tins for 10 minutes, then turn out onto a wire rack to cool completely before frosting.
Coconut Cream Cheese Frosting Instructions
- Beat together the room-temperature butter and cream cheese on medium speed until smooth, about 2 minutes. Gradually add the sifted icing sugar, ½ cup at a time, beating on low speed after each addition. Once all the sugar is incorporated, increase to medium-high and beat until light and fluffy, about 3 minutes.
- Add coconut essence and enough coconut milk to make a spreadable consistency.
- To assemble, use a serrated knife to level the tops of both cake layers. Place the first layer cut-side up on a serving plate or cake stand. Spread about 1 cup of frosting evenly over the top. Place the second layer cut-side down on top. Frost the top and sides of the entire cake with the remaining frosting. Gently press desiccated coconut onto the top and sides of the cake.
Nutrition
What Makes This Coconut Cake Special
Most coconut cake recipes rely on a single source of coconut flavour — usually just shredded coconut folded into the batter. This recipe takes a triple-layered approach: coconut milk in the batter for moisture and subtle richness, coconut essence for an unmistakable aroma, and desiccated coconut on the outside for texture and visual impact.
The reverse-creaming method — where butter is beaten into the dry ingredients before the liquids are added — is what gives this cake its remarkably fine, tight crumb. Unlike traditional creaming (beating butter and sugar first), this technique coats the flour in fat before gluten can develop, resulting in a tender sponge that stays moist far longer than most layer cakes.
The frosting is deliberately tangy. Cream cheese offsets the sweetness of four cups of icing sugar, and the addition of coconut milk and coconut essence ties the frosting directly to the cake layers below. Every bite tastes cohesive rather than like cake topped with generic frosting.
Tips for Best Results
- Room temperature ingredients are non-negotiable. Cold cream cheese will leave lumps in your frosting, and cold butter won’t emulsify properly with the dry ingredients during reverse creaming. Set out butter, cream cheese, egg whites, and milk at least 1 hour before baking.
- Sift the icing sugar. Unsifted icing sugar creates a gritty frosting with visible lumps. A 30-second sift through a fine-mesh sieve makes an enormous difference.
- Don’t over-beat after adding egg whites. Once you start adding the egg white mixture in thirds, mix only until each addition is just incorporated. Over-mixing at this stage develops gluten and toughens the cake.
- Level your layers with a serrated knife. These cake layers dome slightly during baking. Levelling them creates a stable, professional-looking stack and ensures even frosting distribution.
- Shake your canned coconut milk vigorously before measuring. The fat separates from the liquid in the tin, and you need both components for proper moisture and richness in the batter.
Substitutions and Variations
- Coconut essence vs. coconut extract: Coconut essence is synthetic and milder; pure coconut extract is more concentrated and natural-tasting. Either works at a 1:1 ratio, but extract delivers a cleaner flavour.
- Dairy-free adaptation: Replace the butter with vegan butter (such as Miyoko’s) and the cream cheese with a plant-based cream cheese. Use full-fat canned coconut milk in place of the ½ cup whole milk. The cake will be slightly denser but still delicious.
- Coconut milk options: Full-fat canned coconut milk gives the richest result. Carton coconut milk (the kind sold as a beverage) is thinner and produces a lighter cake — either works, but the canned version is preferred.
- Add a coconut simple syrup soak: Combine equal parts sugar and coconut milk, simmer until dissolved, and brush over the warm cake layers for extra moisture and flavour. This is especially helpful if you’re making the cake a day ahead.
- Toasted coconut variation: Toast the desiccated coconut in a dry skillet over medium heat, stirring constantly, for 2–3 minutes until golden. The nutty, caramelised flavour adds another dimension to the finished cake.
Storage and Reheating
Refrigerator: Due to the cream cheese frosting, this cake must be stored in the refrigerator. Cover loosely with plastic wrap or place under a cake dome to prevent the frosting from absorbing fridge odours. It keeps well for up to 4 days. Bring to room temperature for 20–30 minutes before serving — cold cream cheese frosting is stiff and the cake tastes muted when chilled.
Freezer (unfrosted layers): Wrap each cooled, unfrosted layer tightly in plastic wrap, then in a layer of aluminium foil. Freeze for up to 3 months. Thaw overnight in the refrigerator, then bring to room temperature before frosting.
Freezer (frosted cake): You can freeze the fully assembled cake by placing it uncovered in the freezer for 1 hour until the frosting firms up, then wrapping tightly. Thaw overnight in the refrigerator. The desiccated coconut topping may soften slightly after thawing — press on a fresh handful if needed.
What to Serve With This
This coconut cake is rich enough to stand on its own, but a few pairings elevate it further:
- Fresh tropical fruit: Sliced mango, passion fruit pulp, or fresh pineapple cut through the richness beautifully.
- Whipped cream: A small dollop of unsweetened whipped cream alongside each slice balances the sweet frosting.
- Black coffee or espresso: The bitterness of coffee is a natural counterpoint to coconut and cream cheese.
- Coconut or vanilla ice cream: For an over-the-top dessert, serve a warm slice with a scoop alongside.
- Sparkling wine or prosecco: The acidity and bubbles cleanse the palate between bites — ideal for celebrations.
Frequently Asked Questions
Can I make this coconut cake with whole eggs instead of egg whites?
You can, but the result will be different. Egg whites produce a lighter, more tender crumb and a paler cake — which is the classic look for coconut cake. If you use 3 whole large eggs instead, the cake will be slightly denser, richer, and more golden in colour. Both versions taste excellent.
Why is there so much baking powder in the original recipe?
The original recipe lists 4½ tablespoons, which is almost certainly a typo. That amount would leave a metallic, soapy taste and cause the cake to over-rise and then collapse. A standard two-layer cake with 3 cups of flour needs approximately 1 tablespoon (15g) of baking powder. Always double-check leavening amounts — they make or break a cake.
Can I use sweetened coconut milk instead of unsweetened?
You can, but you’ll want to reduce the granulated sugar by about ¼ cup (50g) to compensate. Sweetened coconut milk also tends to be thicker, so the batter may be slightly denser. Unsweetened gives you better control over the final sweetness level.
How do I stop the cream cheese frosting from being too runny?
The most common cause is warm cream cheese or butter. Both should be at cool room temperature — about 65°F / 18°C — not soft or greasy. If the frosting is still too loose after adding all the icing sugar, refrigerate it for 15–20 minutes and re-whip briefly. Adding more icing sugar to fix a loose frosting often makes it cloyingly sweet.
Can I make this as cupcakes instead of a layer cake?
Yes. Fill cupcake liners two-thirds full and bake at 350°F / 180°C (160°C fan-forced) for 18–22 minutes. This recipe makes approximately 24 standard cupcakes. The frosting recipe is generous enough to pipe a tall swirl on each one with some left over.
What size cake tins should I use?
9-inch (23cm) round tins are ideal. If you only have 8-inch (20cm) tins, the layers will be taller and may need an extra 5–8 minutes of baking time — check with a skewer. Do not use tins smaller than 8 inches, as the batter may overflow.
Can I add shredded coconut inside the cake batter?
Absolutely. Fold in ¾ cup (60g) of finely shredded or desiccated coconut at the very end of mixing, just before dividing into pans. This adds texture to the crumb and intensifies the coconut flavour inside the cake. Finely shredded works best — large flakes can create pockets in the sponge.
A Brief History of Coconut Cake
Coconut cake has deep roots in the American South, where it became a holiday tradition in the mid-1800s. Before shredded coconut was commercially available, home bakers had to crack fresh coconuts, drain the liquid, and grate the flesh by hand — making coconut cake a true labour of love reserved for special occasions like Christmas and Easter.
The pairing of coconut cake with cream cheese frosting is a more modern development. Traditional Southern coconut cakes used a boiled white icing or seven-minute frosting. The cream cheese variation likely emerged in the 1970s and 1980s alongside the rise of carrot cake, which popularised cream cheese frosting as a standalone star. Today, the combination of fluffy coconut sponge and tangy cream cheese frosting is arguably more popular than the original — and for good reason. The tang of cream cheese tempers the sweetness and creates a more complex flavour profile that keeps you reaching for another slice.
If you make this coconut cake, I’d love to hear how it turned out — leave a star rating and a comment below to help others find the recipe too!
