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

In a mixing bowl, whisk together flour, baking powder, and salt.

In another bowl, cream together butter and sugar until light and fluffy. Add vegetable oil, coconut extract, vanilla extract, and eggs.

Alternately mix dry mixture and coconut milk into the wet ingredients, beginning and ending with dry ingredients.

Divide batter between pans. Bake for 30-35 minutes or until a toothpick comes out clean. Cool for 10 minutes.

Prepare the custard by whisking egg yolks, sugar, cornstarch, and coconut milk in a saucepan. Cook over medium heat until thick.

Beat cream cheese and butter for the frosting until smooth. Gradually add powdered sugar and mix until fluffy, then fold in shredded coconut.

Assemble the cake by layering custard between cooled cake layers and frosting the outside with coconut cream cheese frosting.

Sprinkle toasted coconut on top before serving and chill slightly in the refrigerator.