Preheat your oven to 170ºC/340ºF and prepare two 20 cm (8-inch) round baking pans.

In a food processor, blend the unsweetened shredded coconut until it reaches a flour-like consistency.

In a large mixing bowl, sift together the blended coconut, all-purpose flour, baking powder, baking soda, and salt.

In another mixing bowl, beat the softened butter and granulated sugar until light and fluffy.

Add the large eggs, two at a time, to the butter mixture, mixing until well combined.

Gradually add half of the dry mixture to the wet ingredients, gently mixing until just combined.

Fold in the remaining dry ingredients until no flour streaks remain.

Pour the batter evenly into the prepared baking pans and bake for 20-23 minutes.

Once baked, remove the pans and allow the cakes to cool for about 10 minutes.

In a mixing bowl, beat the softened butter on high speed until creamy, then add cream cheese, vanilla, and coconut extracts.

Gradually add the sifted powdered sugar, mixing on medium-low speed for a smooth frosting.

With the cake layers completely cooled, spread cream cheese frosting evenly between the layers and cover the entire cake.

Sprinkle coconut flakes on top and around the sides for decoration.