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

In a medium bowl, whisk together the all-purpose flour, baking powder, and salt.

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

Add the eggs, one at a time, mixing well after each addition, and stir in the vanilla extract.

Gradually add the flour mixture to the wet ingredients, alternating with the coconut milk, mixing until just combined.

Gently fold in the shredded coconut until evenly distributed.

Pour the batter into the prepared cake pan and smooth out the top.

Bake for 30-35 minutes or until a toothpick inserted into the center comes out clean.

Let the cake cool in the pan for 10 minutes before transferring it to a wire rack to cool completely.

Once cooled, decorate with whipped cream or powdered sugar and garnish with additional shredded coconut.