Coconut cake with a luscious cream cheese coconut frosting is a worthy celebration cake! My recipe yields an incredibly moist cake with deep coconut flavor.

Coconut cake that is moist, bursting with coconut flavor, and looks like a showstopper has been a cake goal of mine for a loooong time. My first attempt at making the cake was years and years ago now, in celebration of my mom’s spring birthday. That failure (it was dry! so dry! no flavor! Read about that in my story) only encouraged me to dive deeper, until landing on what is now a treasured recipe and one of the best cakes in my cake repertoire.

My easy coconut cake recipe is perfect for special occasions or just because you want to enjoy the singular pleasure of a moist, tender cake packed with a sweet coconut flavor. 

Ingredient Notes

A few of the things that make this cake a stand-out and really the best coconut cake recipe I’ve ever baked or tasted: the cake is from scratch but has the qualities of a white cake mix (egg whites only and no yolks help with this); as a layer cake, you get a very moist cake; and my buttercream, which is essential a coconut cream cheese frosting. Here are some notes about the ingredients:

• Unsalted Butter: Make sure it’s very softened. If you don’t have unsalted butter, you can use salted butter. Just reduce the additional salt in the recipe by half. You can also substitute the butter with vegetable shortening.
• Neutral oil: essential for the cake’s tenderness. Pick any oil that doesn’t impart flavor, such as vegetable oil, expeller-pressed canola oil, safflower oil, etc. Avoid coconut oil because it solidified and will make the cake too dense.
• Granulated Sugar: The best way to go for this cake. Brown sugar as a substitute can add a caramel note and moisture to your cake, but its color is not ideal here.
• All-Purpose Flour: Some recipes may call for cake flour, but this cake stands up perfectly with AP flour. 
• Coconut extract. Essential! The extract imparts deep coconut flavor to both the cake and the frosting. Don’t bake this cake without it! Find it in the baking aisle. You can also add some vanilla extract.
• Coconut Milk. Be sure to shake the can and give it a good stir before measuring. Find it in the baking aisle.
• Sweetened Flake Coconut: The coconut flakes are used to garnish the outside of the cake. Sweetened coconut won’t dry out the way dessicated (unsweetened) coconut does. 
• Yogurt: Use whole milk yogurt. Greek yogurt can serve as a great alternative, but be sure to loosen it with a touch of water or else it will not have the same results as plain yogurt. A better substitute than that would be sour cream.

How to Make Coconut Cake

Follow the steps to the full recipe for baking the cake in the recipe card below! Here are some notes about the process.

Preparing the cake pans: This step is essential to the release of the cakes from the pans. Don’t skip the parchment paper or coating the pans with butter or oil.

Separating the eggs: It’s much easier to separate eggs when they are cold, so that the egg yolks stay intact and doesn’t run into the white. The recipe calls for room temperature egg whites. The way to both separate cold eggs and get the whites to room temp is to separate the whites into a small bowl, then immerse the bowl part way up in warm water for a few minutes. Whisk or stir once or twice to disburse the temperature throughout the whites.

Assembling the cake: Place one layer of cake on your serving dish or footed cake plate, frosting the top with an even layer of buttercream. Place the second cake layer on top of that and frost the top and sides with the remaining frosting.

Coating the cake with coconut: This is a down ‘n dirty process in the sense that you just take a small handful at a time of the shredded coconut, and gently press against the top and sides of the cake. Dust off the excess that falls to the edges of the platter or work surface and use that again. Be sure to apply the coconut to the cake while the buttercream is still soft, right after you frost the cake.

Making a lamb cake: to bake with a lamb cake mold, coat the molds well with butter or oil and then coat them with flour, knocking out any excess. Fill them evenly with batter, to about 1/2 to 1 inch from the top of the mold so the cake doesn’t overflow while baking. Bake until golden, and start checking for doneness after 20 minutes. Assemble and frost the lamb with buttercream and finish with the coconut flakes.

Tips to Ensure Moistness

To ensure that your coconut cake remains moist and delightful, consider these helpful tips:

1. Do Not Overbake: Keep a close eye on your cake layers as they approach the minimum baking time (28 minutes). Even a couple of minutes can make a difference in moisture.
2. Use Yogurt: The inclusion of whole milk plain yogurt in the butter and sugar greatly contributes to a moist, tender cake. 
3. Egg Whites: Beating egg whites into the batter with your stand or electric mixer helps retain air and moisture in the cake. It also keeps the cake bright white without egg yolk in the mix.
4. Simple Syrup: For an extra boost of moisture, you can brush a simple syrup (a mix of sugar and water) onto the cake layers once they have cooled. Flavor it with orange blossom or rose water for another flavor element!
5. Cooling: If you can’t assemble the cake right away, wrap your cooled cake layers in plastic wrap to help trap moisture until you’re ready to frost and serve them.

Storage

To preserve the moistness and freshness of your coconut cake, follow these storage tips:

Frosting Storage: If you have leftover cream cheese buttercream, store it in an airtight container in the refrigerator for up to one week or freezer for up to 3 months. Bring the frosting to room temperature, then you can rewhip the frosting with a whisk, spoon, or an electric mixer before using it again.

Room Temperature storage: If you plan to enjoy the cake within a couple of days, store it at room temperature. Keep it in an airtight container or wrap it in plastic wrap to prevent it from drying out.

Refrigeration: If you won’t be eating the cake within two days, move it to the refrigerator. The cool environment will help prolong its freshness. Just make sure it’s well-wrapped.

Freezing: For longer storage, you can freeze the cake. Wrap each cooled layer tightly in plastic wrap followed by aluminum foil to prevent freezer burn. The cake layers can be frozen for up to three months. To serve, let it thaw in the refrigerator overnight before bringing it to room temperature, frosting and garnishing with coconut. You can also freeze the whole assembled cake, covered, though be sure it is very well protected in an airtight container.