Preheat the oven to 350°F (175°C).
Grease and flour two 9-inch round cake pans.
In a large mixing bowl, combine flour, sugar, baking powder, baking soda, and salt.
In another bowl, mix together the eggs, oil, coconut milk, crushed pineapple, and vanilla extract until well combined.
Gradually add the wet mixture to the dry ingredients, stirring until just combined.
Fold in the shredded coconut gently to maintain the batter's lightness.
Divide the batter evenly between the prepared pans.
Bake in the preheated oven for 25-30 minutes or until a toothpick inserted in the center comes out clean.
Let the cakes cool in the pans for 10 minutes, then turn out onto wire racks to cool completely.
In a mixing bowl, beat together the cream cheese and powdered sugar until smooth and creamy.
Once the cakes are completely cool, place one layer on a serving plate and spread a layer of frosting on top.
Top with the second layer and frost the top and sides of the cake evenly.
Sprinkle the top with additional shredded coconut for garnish before serving.