Preheat the oven to 350°F. In a large bowl combine the dry ingredients (flour, baking powder, and salt).

In a separate large bowl combine the granulated sugar, 6 Tbsp softened butter, and cooking oil. Blend with a hand mixer until well combined. Now add in the eggs, 1 tsp vanilla extract, 3/4 tsp coconut extract, and coconut milk. Blend until smooth.

Add the dry ingredients to the bowl of wet ingredients. Sift the dry ingredients into the wet ingredients to break up any lumps. Blend until just combined.

Fold in 1/2 cup of sweetened coconut flakes into the batter.

Grease the bottom and sides of two 8-inch cake pans with butter and line the bottoms with parchment paper. Divide the cake batter evenly between both pans.

Place both cake pans in the preheated oven and bake for 28-30 minutes, or until the tops are golden brown and a toothpick inserted comes out clean.

Allow the cakes to cool for 10 minutes, then remove them from the cake pans and place on a wire rack to finish cooling completely.

While the cakes are cooling, make the frosting. In a medium bowl blend the softened cream cheese and 6 Tbsp of softened butter until smooth. Now add in the powdered sugar, one cup at a time, along with 1 tsp of vanilla extract and 1 tsp of coconut extract. Blend until smooth.

Once the cakes are completely cooled, carefully cut off the domed tops of both cakes using a serrated knife to create a flat surface.

Place one cake on a cake stand and spread about 1 cup of frosting on top, starting from the center and working your way out.

Add the second layer of cake and spread 1 cup of frosting on top, allowing some to run over the sides and edges of the cake.

Now spread the remaining frosting around the sides of the cake and any extra on top. Garnish the top and sides with the rest of the sweetened coconut flakes.