Preheat oven to 275 degrees F. (That low temperature is correct.) Grease and flour two 9-inch cake pans. (I also put parchment paper in the bottom of pans and then grease again)
Separate eggs whites from yolks, set aside whites in a medium bowl.
In a large bowl, add the butter, sugar, 1 cup cream of coconut milk and the egg yolks. Using a hand mixer, on medium speed, beat until fluffy and combined.
In a separate bowl, whisk together the dry ingredients. Slowly add dry ingredients into the wet, with mixer on low speed, alternating with the buttermilk/ coconut extract mixture.
In the bowl of egg whites add a pinch of salt and beat on high speed until stiff. Fold the egg whites into the batter until just combined. Divide batter evenly among the two cake pans. Bake for 65 to 70 minutes, or until toothpick inserted in center comes out clean.
Let cakes cool in pans for 10 minutes, then invert onto a wire rack. Poke holes all over top of cakes (making sure not to poke all the way through) Drizzle the remaining 1/2 cup of cream of coconut onto both cakes.
Let cakes cool completely before frosting. (After my cakes were cooled I wrapped them in saran wrap and then put them in the fridge overnight, so they would be easy to frost the next day)
For Frosting: In a medium bowl, add butter, cream cheese and coconut extract. Using a hand mixer on medium speed, beat together until combined and fluffy. Slowly add in the powdered sugar until frosting reaches your desired consistency. You may need to add a little milk.
Place one cake onto a cake platter or plate. Frost the top of that cake with frosting. Place the second cake on top and frost top and sides of the cake. Grab handfuls of toasted coconut and gently press onto the sides and top of cake. Enjoy! (Keep leftover cake covered and refrigerated)
* For Toasted Coconut: Place 2 cups of sweetened, shredded coconut onto an un-greased cookie sheet. Bake for 10 minutes in a 325 degree oven. Some pieces will be browned and others white and soft. Let cool before covering on cake.