My aunt used to make this cake for every family birthday when I was growing up. She called it her “special occasion cake,” and we kids would get so excited whenever we saw her pulling out the coconut and cream cheese.
I begged her for the recipe for years, but she always said she’d teach me “someday.” Well, someday never came before she passed away, so I had to recreate it from memory and a lot of trial and error.
This version is as close as I’ve gotten to hers, and my family says it’s even better. The name comes from how fluffy and light it looks with all that coconut covering – just like sitting on a cloud.
What Makes This Cake So Special?
The coconut milk in the batter keeps everything incredibly moist, while the coconut extract gives it that tropical flavor without being overwhelming.
But the real magic is in that cream cheese frosting. It’s lighter than regular buttercream but still rich enough to balance the sweet coconut flavors.
And then there’s the coconut coating – it transforms a regular layer cake into something that looks like it came from a fancy bakery.
Why You’ll Love This Recipe
It’s impressive enough for special occasions but not so complicated that you need to be a professional baker to pull it off.
The cake itself is tender and flavorful, and the frosting is stable enough that you can make it ahead without worrying about it falling apart.
Plus, coconut lovers will absolutely go crazy for this. It’s coconut in every single component, but somehow it’s not too much.
Recipe Tips for Success
Room temperature ingredients are crucial for this cake. Take your eggs, butter, and cream cheese out at least an hour before you start baking.
Don’t overmix once you add the flour. Mix just until you can’t see streaks of flour, then stop. Overmixing makes the cake tough.
Toast your coconut if you want extra flavor. Just spread it on a baking sheet and bake at 350°F for 5-7 minutes, stirring once, until golden.
What You’ll Need
Coconut milk is key here – use the canned kind, not the carton variety. The canned version is much richer and gives better flavor.
For the shredded coconut, sweetened works best for the topping. You can use unsweetened if you prefer, but the sweetened kind gives that classic coconut cake taste.
Make sure your cream cheese is really softened. Hard cream cheese will create lumps in your frosting that are impossible to get out.
How to Make Coconut Cloud Cake
Start by preheating your oven to 350°F and preparing two 9-inch round cake pans. Grease them well, dust with flour, and line the bottoms with parchment paper for easy removal.
In a medium bowl, whisk together your flour, baking powder, and salt. This ensures even distribution and prevents pockets of leavening agent.
In your large mixing bowl, cream the butter and sugar together for 3-4 minutes until the mixture is light and fluffy. This step is important for getting the right texture.
Add your eggs one at a time, beating well after each addition. This helps maintain the emulsion and keeps your batter smooth.
Stir in both extracts – the vanilla adds depth while the coconut extract provides that distinctive tropical flavor.
Now comes the alternating method. Add one-third of your flour mixture, mix just until combined, then add half the coconut milk. Mix again, add another third of flour, the remaining coconut milk, and finish with the last of the flour.
This method prevents overmixing while ensuring everything is well incorporated. Stop mixing as soon as you don’t see any flour streaks.
Divide the batter evenly between your prepared pans and smooth the tops with a spatula. A kitchen scale is helpful here for even layers, but eyeballing it works fine too.
Bake for 25-30 minutes, checking with a toothpick at 25 minutes. The cake is done when the toothpick comes out clean or with just a few moist crumbs.
Cool the cakes in their pans for 10 minutes, then turn them out onto wire racks to cool completely. Don’t try to frost warm cake – it will melt your frosting.
While the cakes cool, make your frosting. Beat the softened cream cheese until it’s completely smooth with no lumps.
Add the powdered sugar gradually and beat until well combined. The mixture should be smooth and creamy.
In a separate bowl, whip the heavy cream to stiff peaks. Don’t overbeat or you’ll make butter instead of whipped cream.
Gently fold the whipped cream into the cream cheese mixture. Add both extracts and fold just until everything is combined.
To assemble, place one cake layer on your serving plate. Spread a generous layer of frosting on top, going right to the edges.
Add the second layer and frost the entire cake, top and sides. Don’t worry about making it perfect – the coconut will cover any imperfections.
Press the shredded coconut all over the cake, covering every bit of frosting. This is where it gets its “cloud” appearance.
Refrigerate for at least an hour before serving to let the frosting set properly.
Variations to Try
Add some lime zest to the batter for a tropical twist. About a tablespoon gives just enough citrus brightness without overwhelming the coconut.
Try using toasted coconut for deeper flavor. Just watch it carefully so it doesn’t burn.
For chocolate lovers, add some mini chocolate chips to the batter. They pair surprisingly well with coconut.
You can also make this as cupcakes – just bake for 18-22 minutes and frost individually.
Serving Suggestions
This cake is rich, so smaller slices go further than you might think. It’s perfect after a light dinner or as the centerpiece of a special celebration.
Serve with fresh berries if you want to cut through some of the richness. Strawberries and raspberries work especially well.
A cup of coffee or tea is the perfect accompaniment to balance all that coconut sweetness.
Storage and Keeping
Store covered in the refrigerator for up to 4 days. The cream cheese frosting needs to stay cold to maintain its texture.
Let it sit at room temperature for about 15 minutes before serving for the best flavor and texture.
You can freeze the unfrosted cake layers wrapped tightly for up to 3 months. Thaw completely before frosting.
Can I Make Substitutions?
If you can’t find coconut extract, you can use all vanilla, but you’ll lose some of that distinctive coconut flavor.
Heavy cream can be replaced with whipped topping, but the texture won’t be quite as light and airy.
For a dairy-free version, try using vegan butter and cream cheese substitutes, though I haven’t tested this myself.
What All Goes in Coconut Cloud Cake
For the Cake:
- 2 1/2 cups all-purpose flour
- 2 1/2 teaspoons baking powder
- 1/2 teaspoon salt
- 1 cup unsalted butter, softened
- 2 cups granulated sugar
- 4 large eggs, room temperature
- 1 teaspoon vanilla extract
- 1 teaspoon coconut extract
- 1 cup coconut milk
For the Frosting:
- 1 1/2 cups heavy whipping cream
- 8 oz cream cheese, softened
- 1/2 cup powdered sugar
- 1 teaspoon vanilla extract
- 1 teaspoon coconut extract
For Topping:
- 1 cup sweetened shredded coconut, toasted or fresh
Prep Time: 30 minutes
Baking Time: 25-30 minutes
Total Time: 2 hours (including chilling)
Servings: 12 slices
Calories: 485 kcal per slice
Frequently Asked Questions
Can I Make This Ahead?
Yes, this cake actually improves after sitting overnight. The flavors meld together beautifully. Just keep it refrigerated and covered.
Why Did My Frosting Turn Out Runny?
This usually happens when the cream cheese wasn’t cold enough or if you overwhipped the cream. Make sure both components are properly prepared before combining.
How Do I Know When the Cake Is Done?
A toothpick inserted in the center should come out clean or with just a few moist crumbs. The cake should also spring back lightly when touched.
Can I Use Fresh Coconut?
Absolutely! Freshly grated coconut tastes amazing, though it’s more work. You’ll need about the same amount as the shredded coconut.
My Cake Layers Came Out Uneven. What Happened?
This could be uneven batter distribution or an unlevel oven. Use a kitchen scale to divide batter evenly, and rotate your pans halfway through baking.
How Long Will This Keep?
In the refrigerator, it stays fresh for up to 4 days. The coconut might lose some crispness after the first day, but the cake itself remains delicious.
