Step 1: Prepare the Cake Batter

1. Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
2. In a medium bowl, whisk together flour, baking powder, baking soda, and salt. Set aside.
3. In a large bowl, cream together butter, granulated sugar, and brown sugar until light and fluffy.
4. Add eggs one at a time, beating well after each addition. Stir in vanilla extract.
5. Gradually add the dry ingredients, alternating with crushed pineapple and coconut milk, mixing until combined.
6. Fold in shredded coconut.

Step 2: Bake the Cake

1. Divide batter evenly between prepared cake pans and smooth the tops.
2. Bake for 25–30 minutes or until a toothpick inserted in the center comes out clean.
3. Cool cakes in pans for 10 minutes, then transfer to a wire rack to cool completely.

Step 3: Make the Coconut Frosting

1. Beat cream cheese and butter until smooth and creamy.
2. Gradually add powdered sugar, mixing well after each addition.
3. Stir in vanilla extract and coconut milk, beating until light and fluffy.

Step 4: Assemble the Cake

1. Place one cake layer on a serving plate and spread with frosting.
2. Add the second layer and frost the entire cake evenly.
3. Sprinkle toasted coconut flakes on top and garnish with pineapple slices if desired.

Step 5: Serve and Enjoy

1. Slice and serve with tea or a tropical drink.