Preheat the Oven: Set your oven to 350°F (175°C). Generously grease and flour a Bundt or tube pan to prevent sticking.
Mix Dry Ingredients: In a medium bowl, whisk together the flour, baking powder, and salt. Set aside.
Cream Butter and Sugar: In a large mixing bowl, beat the softened butter and granulated sugar with a hand or stand mixer on medium speed for 3–5 minutes, until the mixture is pale and fluffy. This step is key to a light texture.
Incorporate Eggs and Flavoring: Add the eggs one at a time, beating well after each addition. Stir in the coconut extract.
Alternate Dry and Wet: Add the dry ingredients to the wet mixture in three parts, alternating with the coconut milk. Start and end with the flour. Mix until just combined—do not overmix.
Fold in Coconut: Gently fold in the sweetened shredded coconut using a spatula, making sure it’s evenly distributed throughout the batter.
Bake: Pour the batter into the prepared pan and smooth the top. Bake for 55–65 minutes, or until a toothpick inserted into the center comes out clean. The top should be golden brown and spring back lightly when touched.
