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Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
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Mix dry ingredients: In a medium bowl, whisk together the flour, baking powder, and salt.
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Cream butter and sugar: In a large bowl, beat the butter and sugar until light and fluffy.
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Add eggs and vanilla: Beat in the eggs one at a time, then add the vanilla extract.
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Combine wet and dry: Alternately add the flour mixture and coconut milk to the butter mixture, beginning and ending with the flour mixture. Mix until just combined.
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Fold in pineapple and coconut: Gently fold in the crushed pineapple and shredded coconut.
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Bake: Divide the batter evenly between the prepared pans. Bake for 30-35 minutes, or until a toothpick inserted into the center comes out clean.
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Cool: Let the cakes cool in the pans for 10 minutes, then turn out onto wire racks to cool completely.
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Make frosting: Beat the butter until creamy. Gradually add powdered sugar, beating well after each addition. Add coconut milk and vanilla extract, and beat until smooth and fluffy.
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Assemble: Place one cake layer on a serving plate. Spread frosting over the top. Place the second layer on top and frost the top and sides of the cake.
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Decorate: Sprinkle shredded coconut over the top of the cake.
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Chill: Refrigerate for at least 1 hour before serving to let the flavors meld.
Enjoy your tropical Pineapple Coconut Dream Cake! If you want, I can also provide a printable version or tips for variations.
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