Preheat the oven to 350°F (175°C) and grease two round cake pans.

In a bowl, whisk together flour and baking powder until combined.

In another bowl, cream the softened butter and sugar until light and fluffy.

Add eggs one at a time, mixing well after each addition. Stir in the coconut milk until smooth.

Gradually add the dry ingredients to the wet mixture, then fold in the coconut flakes.

Divide the batter evenly between the prepared pans and bake for 25-30 minutes or until a toothpick inserted comes out clean. Allow to cool before frosting.