Preheat oven to 350°F (175°C) and line two 8-inch cake pans with parchment.
Whisk flour, baking powder, and salt together in a large bowl.
Beat butter, coconut oil, and sugar until light and fluffy.
Add eggs one at a time, then mix in vanilla and coconut extracts.
Alternate adding dry ingredients and the coconut milk–whole milk mixture.
Divide batter into cake pans and bake for 25–28 minutes.
Cool cakes completely on a wire rack.
Beat cream cheese until smooth, then add powdered sugar and extracts.
Whip heavy cream to stiff peaks and fold into the cream cheese mixture.
Assemble cake by layering frosting between cake layers and covering the outside.
Coat the entire cake with shredded coconut for a cloud-like finish.
