Preheat oven to 325°F. Spray a 9 x 13 cake pan with non stick spray.
In a large bowl, whisk together flour, baking powder and salt.
In a separate bowl, cream the butter and sugar together using an electric mixer until fluffy (about 3 minutes). Add in eggs, one at a time, and mix well.
Stir in the milk, coconut extract and shredded coconut. Finally, stir in the flour, baking powder and salt mixture, stirring gently to combine.
Pour batter into prepared pan and bake 50-60 minutes or until a toothpick inserted into the middle comes out clean.
Cool cake completely before frosting.
For Frosting
Combine cream cheese and butter together using an electric mixer until well combined. About 3 minutes. Add coconut and vanilla extract, confectioners sugar. Mix until fluffy. Spread over cooled cake and top with remaining coconut.