Easy homemade coconut cake with coconut milk

If you want a coconut cake that bakes up soft, fluffy, and honestly pretty without any fussy decorating, this one is it. It is a simple one bowl cake made with coconut milk and shredded coconut, topped with a creamy coconut frosting that turns every slice into a little holiday moment, even on a random Tuesday.

Preheat your oven, grab a mixing bowl, and let’s make your new go to coconut cake.

Why you’ll love this coconut cake

• Big coconut flavor from coconut milk plus shredded coconut
• Fluffy, tender crumb that stays moist for days
• Bakes in a simple rectangle pan, easy to transport and slice
• Frosting is quick, creamy, and forgiving

What you’ll need

For the cake

• 2 cups all purpose flour (about 240 g)
• 3/4 cup granulated sugar (about 150 g)
• 1 tablespoon baking powder
• 1/2 teaspoon salt
• 1/2 cup unsalted butter, softened (1 stick, about 113 g)
• 1 cup coconut milk, shaken well (about 240 ml, full fat or light) – canned is better, but carton will still turn out fine
• 3 large eggs, at room temperature
• 1 teaspoon vanilla extract
• 1 cup shredded sweetened coconut (about 80 g), plus extra for topping if you like

For the coconut frosting

• 1 cup unsalted butter, softened (2 sticks, about 226 g)
• 4 cups powdered sugar, sifted (about 480 g)
• 1/4 cup coconut milk (about 60 ml), plus 1 to 2 teaspoons more if needed
• 1/2 cup shredded coconut (about 40 g)

A few quick success tips before you start

These take almost no extra time, but they make the cake much more foolproof.

• Use room temperature butter and eggs, the batter mixes smoother and rises better.
• Measure flour lightly (spoon and level) – too much flour is the fastest way to lose that fluffy texture.
• Line the pan with parchment with a little overhang, then grease the parchment too, the cake lifts right out.

How to make coconut cake with coconut milk

1. Prepare the oven and pan

1. Preheat your oven to 350°F (175°C).
2. Grease and flour an 11 x 7 inch rectangle pan (about 28 x 18 cm), or line it with parchment. If you use parchment, leave an overhang on the long sides so you can lift the cake out like a sling.

2. Mix the dry ingredients

1. In a large bowl, add the flour, sugar, baking powder, and salt.
2. Whisk for a full 20 to 30 seconds so the baking powder is evenly distributed.

3. Add the wet ingredients and mix

Add the softened butter, coconut milk, eggs, and vanilla to the bowl. Mix with an electric mixer on medium speed for about 2 minutes, until smooth and well combined.

Stop as soon as the batter is smooth. Overmixing can make the cake tighter instead of fluffy.

Optional extra foolproof method (great if you tend to overmix): Mix the butter into the dry ingredients first until it looks like damp sand, then add coconut milk, eggs, and vanilla and mix just until smooth.

4. Fold in the coconut

Fold in the shredded coconut gently with a spatula until evenly distributed.

If you want extra insurance against the coconut sinking, toss it with 1 tablespoon of the measured flour before folding it in.

5. Pour and bake

Pour the batter into the prepared pan and smooth the top. Bake for 25 to 30 minutes, or until a toothpick inserted in the center comes out clean or with a few moist crumbs.

Tip: Start checking at 22 to 25 minutes. Coconut cakes can dry out if they go a little too long.

Cool the cake in the pan for about 10 minutes, then lift it out (or turn it out) to cool completely on a wire rack.

Make the coconut frosting

6. Beat the butter and sugar

Beat the softened butter until creamy. Gradually add powdered sugar, mixing well after each addition. Add coconut milk and beat until light and fluffy. Fold in the shredded coconut, saving a bit for sprinkling on top.

Tips for perfect frosting:

• A tiny pinch of salt helps balance the sweetness and boosts coconut flavor.

• Sift the powdered sugar if it’s lumpy, it makes the frosting smoother.

• If it’s too thick, add coconut milk 1 teaspoon at a time.

• If it’s too soft, add powdered sugar 2 to 3 tablespoons at a time.

Assemble your Coconut Christmas cake

7. Frost and finish

When the cake is completely cool, spread the frosting over the top. Sprinkle with extra shredded coconut.

For the cleanest slices, chill the frosted cake for 15 to 20 minutes before cutting.

8. Serve

Slice and enjoy. This cake is especially good with coffee or tea, and it is easy to dress up for a party with toasted coconut on top.

Optional upgrades that make it even better

• Toast your topping coconut: Spread it on a sheet pan and bake at 325°F (165°C) for 5 to 8 minutes, stirring once. Watch closely, it browns fast.
• Add coconut extract: 1/4 to 1/2 teaspoon in the cake batter or frosting adds a stronger coconut vibe without changing the texture.
• Want a layer look without changing pans: Once cooled, cut the cake in half crosswise, stack the pieces with frosting in between, then frost the top.

Storage and make ahead

• Room temperature: Store covered for up to 3 days.
• Fridge: Store covered for up to 1 week. Let slices sit at room temp for 15 to 20 minutes before serving for the best texture.
• Keep it airtight: Coconut cake dries out when exposed to air, so a tight container really matters here.