Preheat oven to 350°F. Prepare three 8-inch cake pans with parchment paper and grease the sides.

In a medium bowl, whisk together flour, baking powder, and salt. Set aside.

In a large mixing bowl, beat butter, sugar, coconut extract, vanilla, until light and fluffy. Add eggs one at a time, mixing well after each.

Alternately add dry ingredients and coconut milk to the batter, beginning and ending with dry ingredients. Mix until just combined.

Divide batter evenly into prepared pans. Bake for 20-25 minutes, until a toothpick inserted in the center comes out clean.

Cool cakes in pans for 10 minutes, then turn out onto wire racks to cool completely.

Meanwhile, prepare coconut custard: Whisk egg yolks with 6 tbsp sugar and cornstarch. Heat milk in a saucepan until boiling.

Gradually pour hot milk into egg mixture, whisking constantly. Return to saucepan and cook over medium heat until thickened.

Remove from heat, stir in shredded coconut, butter, coconut extract, vanilla. Cover and refrigerate until cooled.

Make frosting: Beat cream cheese and butter until smooth. Gradually add powdered sugar, coconut extract, vanilla, until fluffy.

Assembling: Level cakes if needed. Spread coconut custard between layers, frost outside, then press toasted coconut onto sides and top.

Refrigerate before serving. Best enjoyed within 3 days.