Preheat your oven to 350°F (175°C) and grease and flour two 9-inch round cake pans.

In a bowl, whisk together the flour, baking powder, and salt. Add the shredded coconut and mix until evenly distributed.

In a separate bowl, cream together the softened butter and sugar until light and fluffy, about 3-4 minutes.

Beat in the egg yolks, one at a time, ensuring each is fully incorporated before adding the next. Mix in the coconut extract until well combined.

Gradually add the flour mixture to the butter mixture, alternating with the milk. Start and end with the flour, mixing until just combined.

In a separate bowl, beat the egg whites until stiff peaks form. Gently fold the whipped egg whites into the batter, being careful not to deflate them.

Divide the batter evenly between the prepared cake pans. Bake for 25-30 minutes or until a toothpick inserted into the center comes out clean. Allow the cakes to cool in the pans for 10 minutes before transferring to a wire rack to cool completely.

In a mixing bowl, whip the heavy cream until soft peaks form. Gradually add in the powdered sugar and vanilla, continuing to whip until stiff peaks form.

Once the cake is cool, spread a layer of whipped cream frosting on top of one cake layer. Place the second layer on top and frost the top and sides with the remaining whipped cream. Finish by sprinkling shredded coconut on top.