Preheat oven to 350 degrees F. Line *4- 6inch cake pans with parchment paper. Lightly grease with butter. Set aside.
Whisk together flour, baking powder, and salt. Set aside.
In a small bowl, whisk together melted butter, olive oil, and coconut milk. Set aside.
In the bowl of a stand mixer fitted with a paddle attachment, beat eggs and sugar until mixture is pale in color and slightly thickened. Scrape down the bowl as necessary to ensure thorough mixing.
Alternate adding the flour mixture and wet mixture, beginning and ending with the flour. Mix on low speed until combined. Fold in dried coconut.
Divide batter between prepared cake pans. Level batter using a spoon or mini offset spatula. Bake for 35-40 minutes until cakes are golden brown and toothpick inserted in center of cake comes out clean. Let cool in pan for 5-10 minutes before unmolding. Allow to cool to room temperature on wire rack.
Coconut Cream Cheese Frosting:
In the bowl of a stand mixer fitted with a paddle attachment, whip butter and cream cheese until smooth. Scrape down bowl as necessary to ensure thorough mixing.
Add sifted powdered sugar, coconut milk, vanilla extract, and pinch of salt. Mix until smooth.
The recipe makes four 6-inch cakes. I only used three to make the cake. The fourth cake was eaten for test purposes!