Preheat your oven to 350°F (175°C) and grease your cake pans thoroughly.

Line the bottoms with parchment paper for easy removal and even baking.

In a medium bowl, whisk together flour, cornstarch, baking powder, baking soda, and salt until fully combined.

In a large bowl, beat butter, oil, and sugar together for 3–4 minutes until light, pale, and fluffy.

Add eggs one at a time, mixing well after each addition to maintain a smooth batter.

Mix in vanilla extract and coconut extract for enhanced flavor.

Pour in coconut milk and buttermilk, mixing until the batter becomes smooth and creamy.

Gradually add the dry ingredients into the wet mixture in three parts.

Fold gently using a spatula to avoid overmixing and maintain a light texture.

Fold in shredded coconut evenly throughout the batter.

Divide the batter evenly between the prepared pans.

Tap pans lightly on the counter to remove any trapped air bubbles.

Bake for 30–35 minutes or until the tops are lightly golden and a toothpick inserted comes out clean.

Remove from oven and allow cakes to cool in the pans for 10–15 minutes.

Transfer cakes to a cooling rack and let them cool completely before frosting.

While cakes cool, prepare the frosting by beating butter until smooth and creamy.

Add cream cheese and beat until fully combined and fluffy.

Gradually add powdered sugar while mixing on low speed.

Add coconut milk, vanilla, and coconut extract.

Beat on medium-high speed until frosting is light, fluffy, and spreadable.

Level cake layers if needed using a serrated knife.

Place the first layer on a cake stand and spread an even layer of frosting.

Add the second layer and repeat the frosting process.

Frost the entire cake, smoothing the sides and top evenly.

Gently press shredded coconut onto the sides and top for a full coating.

Chill the cake for 20–30 minutes to help the frosting set.

Slice and serve once slightly chilled or at room temperature.