Preheat and prep: Preheat oven to 350°F. Grease and line a cake pan (loaf or round).

Mix dry ingredients: Sift flour, then mix in baking powder and salt. Set aside.

Cream butter and sugar: In a large bowl, cream butter and sugar until pale and fluffy.

Add eggs: Slowly add the lightly beaten eggs while mixing on low speed.

Combine wet and dry: On low speed, alternate adding half the coconut milk and coconut extract with half the flour mixture. Mix until just combined.

Add coconut: Fold in the shredded coconut. Add remaining coconut milk and flour, mix just until combined.

Bake: Pour batter into prepared pan. Bake for 50–55 minutes, or until a toothpick comes out clean.

Cool: Let cool in the pan for 10–15 minutes, then transfer to a wire rack. Then let it cool all the way down before applying the glaze.

In a medium bowl, mix powdered sugar and coconut milk until smooth. Pour over fully cooled cake.

Sprinkle with some desiccated coconut if using.