Preheat oven to 375 degrees F (190 degrees C). Grease and flour two 9 inch round cake pans.
In a large bowl, sift together the flour, baking powder and salt. Set aside.
In a medium bowl, mix together the butter and sugar until light and fluffy. Beat in the eggs one at a time, then stir in the vanilla and coconut milk.
Gradually stir the dry ingredients into the wet ingredients until just blended.
Spread half of the batter into the prepared pans. Sprinkle half of the shredded coconut over each cake. Pour the sweetened condensed milk over each cake, then spread the remaining batter over the top. Sprinkle with remaining coconut.
Bake in preheated oven for 25 to 30 minutes, or until a toothpick inserted into the center of the cake comes out clean.
Allow to cool before serving.
Interesting Facts
Coconut Layer Cake is a popular dessert in Caribbean and South American cuisine.
Coconut is a nutritious food with many health benefits.
This cake can be served with a scoop of ice cream or a dollop of whipped cream for an extra special treat.