Preheat your oven to 350°F (175°C). Grease and flour a 9-inch round cake pan.

In a mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.

Add the eggs one at a time, mixing well after each addition. Stir in the vanilla extract.

In a separate bowl, whisk together the flour, baking powder, baking soda, and salt.

Gradually add the dry ingredients to the butter mixture, alternating with the buttermilk and coconut milk. Begin and end with the dry ingredients. Mix until just combined.

Fold in the shredded coconut until evenly distributed in the batter.

Pour the batter into the prepared cake pan and smooth the top with a spatula.

Bake in the preheated oven for 25-30 minutes or until a toothpick inserted into the center comes out clean.

Allow the cake to cool in the pan for 10 minutes before transferring it to a wire rack to cool completely.

For frosting, mix the powdered sugar with a little coconut milk until smooth and drizzle over the cooled cake.