1. Preheat your oven to 350°F (175°C). Grease and line three 9-inch cake pans with parchment paper.
2. Whisk together flour, baking powder, and salt in a bowl. Set aside.
3. In a large bowl, cream together butter and sugar until light and fluffy. Add eggs one at a time, fully incorporating after each addition.
4. Mix in coconut milk, vanilla, and coconut extracts. Gradually add dry ingredients, mixing until just combined.
5. Divide batter evenly among prepared pans and bake for 25-30 minutes or until a toothpick inserted comes out clean. Cool in pans for 10 minutes, then transfer to wire racks to cool completely.
6. For the frosting, beat butter until creamy. Gradually add powdered sugar, coconut milk, extracts, and salt, beating to a smooth and fluffy consistency.
7. Assemble the cake by spreading frosting between layers, over the top, and around the sides. Garnish with shredded coconut.
8. Chill before serving to allow flavors to meld together.

Notes:
For an extra coconutty flavor, toast the shredded coconut garnish until golden before sprinkling on the cake. If desired, simple syrup can be brushed on each cake layer before frosting for added moisture.