Why You’ll Love This Coconut Cloud Cake
If you’re a coconut lover like me, this Coconut Cloud Cake will absolutely make your taste buds dance with joy.
The combination of tender, moist cake layers infused with both coconut milk and extract creates the most heavenly flavor profile I’ve ever tasted.
What makes this cake truly special is its versatility. Perfect for birthdays, potlucks, or just because it’s Tuesday and you deserve something amazing.
The cream cheese frosting balances the sweetness perfectly, while the toasted coconut adds that satisfying textural element that makes each bite interesting.
Trust me, your friends will beg for the recipe.
What Ingredients are in Coconut Cloud Cake?
This coconut cloud cake calls for a delightful mix of pantry staples and special ingredients that come together to create something truly magical. The combination of coconut milk, extract, and shredded coconut gives this cake its signature tropical flavor that’s hard to resist.
I’m particularly fond of how the vanilla bean paste adds those beautiful specks throughout both the cake and frosting, elevating this from a simple dessert to something that looks professionally made.
For the Cake:
- 2 ½ cups (310g) all-purpose flour
- 2 ½ teaspoons baking powder
- ½ teaspoon salt
- ½ cup (115g) unsalted butter, softened
- ½ cup (120ml) neutral oil (vegetable or canola)
- 1 ¾ cups (350g) granulated sugar
- 4 large eggs, room temperature
- 1 teaspoon vanilla bean paste
- 1 teaspoon coconut extract
- 1 cup (240ml) coconut milk (canned, full fat)
- ½ cup (120ml) coconut milk (for buttermilk substitute)
For the Frosting:
- 8 oz (225g) cream cheese, softened
- ½ cup (115g) unsalted butter, softened
- 4 cups (480g) powdered sugar, sifted
- 2–3 tablespoons coconut milk
- 1 teaspoon vanilla bean paste
- 1 teaspoon coconut extract
For Topping:
– 2 cups (150g) sweetened shredded coconut (toasted or untoasted)
When shopping for this recipe, the quality of your coconut products makes a big difference. Look for canned full-fat coconut milk rather than the carton variety, which can be watered down.
For the coconut extract, a little goes a long way, so don’t worry if the bottle seems small. And while the recipe gives you the option of toasting the coconut or leaving it soft, I find toasting adds a wonderful nuttiness that complements the cake’s sweetness, though untoasted gives that classic, snowy white appearance that’s just as appealing.
How to Make This Coconut Cloud Cake
Making this dreamy coconut cloud cake starts with proper preparation. Preheat your oven to 350°F (175°C), then grease and flour two 9-inch round cake pans. Don’t skip lining the bottoms with parchment paper—this simple step prevents heartbreak when removing your cakes later.
In a medium bowl, whisk together 2½ cups of all-purpose flour, 2½ teaspoons of baking powder, and ½ teaspoon of salt until well combined.
For the cake batter, cream ½ cup of softened unsalted butter with ½ cup of neutral oil and 1¾ cups of granulated sugar until light and fluffy. This might take 3-4 minutes, but patience here creates that cloud-like texture we’re after.
Add 4 room-temperature eggs one at a time, mixing well after each. The room temperature part really matters—cold eggs can cause your batter to curdle, and nobody wants that drama.
Stir in 1 teaspoon each of vanilla bean paste and coconut extract, which infuse the batter with that unmistakable tropical aroma. Gradually add your dry ingredients, alternating with 1 cup of full-fat coconut milk and ½ cup of coconut milk (our buttermilk substitute), beginning and ending with the dry mix. The batter should look silky and smooth, just begging to be baked into something wonderful.
After dividing the batter between your prepared pans, bake for about 25-30 minutes, or until a toothpick comes out clean.
While the cakes cool completely, prepare the frosting by beating 8 oz of softened cream cheese with ½ cup of softened butter until smooth. Gradually mix in 4 cups of sifted powdered sugar, 2-3 tablespoons of coconut milk, and 1 teaspoon each of vanilla bean paste and coconut extract.
Once your cakes are completely cool (rushing this step is asking for a melty disaster), frost generously between layers and around the entire cake.
The finishing touch? Press 2 cups of sweetened shredded coconut all over the frosted cake—toasted for a nutty flavor or left soft for that classic snowy look. Just look at that gorgeous creation you’ve made—it’s basically a tropical vacation on a cake stand.
Coconut Cloud Cake Substitutions and Variations
While our classic coconut cloud cake recipe is heavenly as written, I’ve learned that a bit of creative flexibility can actually enhance your baking adventure.
Don’t have coconut extract? Vanilla works beautifully, though you’ll miss some tropical intensity. For a dairy-free version, swap butter for coconut oil and use vegan cream cheese in the frosting.
Want to jazz things up? Try adding lime zest to the batter, or fold in a cup of chopped pineapple for a piña colada vibe.
My personal favorite variation? Adding a layer of passionfruit curd between the cake layers, which cuts through the sweetness perfectly.
What to Serve with Coconut Cloud Cake
When serving a stunning Coconut Cloud Cake, what accompanies it can elevate the entire dessert experience from merely delightful to absolutely memorable.
I love pairing mine with a scoop of vanilla bean ice cream that slowly melts against the warm cake (if served fresh), creating this heavenly temperature contrast.
Fresh berries—particularly strawberries or raspberries—add a pop of color and tangy counterpoint to the sweet coconut.
A drizzle of caramel sauce? Divine.
For drinks, consider a rich espresso, coconut milk latte, or champagne if you’re feeling festive.
And between us, I sometimes sneak extra toasted coconut on the side for those who can’t get enough.
Final Thoughts
The joy of baking this Coconut Cloud Cake extends beyond just the final slice.
It’s about creating something truly special that brings people together, one fluffy layer at a time. I’ve watched eyes widen as guests take their first bite, that moment when the coconut flavor hits them in all its tropical glory.
This cake has become my go-to celebration dessert, versatile enough for birthdays yet sophisticated enough for dinner parties.
Trust me, the effort is worth every compliment you’ll receive. And isn’t that what baking’s all about? Creating memories, one delicious cloud-like cake at a time.

Coconut Cloud Cake
Ingredients
Equipment
Method
- Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans and line the bottoms with parchment paper.
- In a medium bowl, whisk together flour, baking powder, and salt until well combined.
- Cream butter with oil and granulated sugar until light and fluffy, about 3-4 minutes.
- Add eggs one at a time, mixing well after each addition.
- Stir in vanilla bean paste and coconut extract.
- Gradually add dry ingredients, alternating with coconut milk and coconut milk buttermilk substitute, beginning and ending with the dry mix.
- Divide batter between prepared pans and bake for 25-30 minutes, or until a toothpick comes out clean.
- Allow cakes to cool completely.
- For the frosting, beat cream cheese with butter until smooth.
- Gradually mix in powdered sugar, coconut milk, vanilla bean paste, and coconut extract until smooth.
- Once cakes are cool, frost between layers and around the entire cake.
- Press shredded coconut all over the frosted cake.




