Preheat your oven to 350°F (180°C) and grease and flour two 9-inch round cake pans.
In a mixing bowl, sift together the flour, cornstarch, baking powder, and salt. Set aside.
2 cups Flour, 1/4 cup Cornstarch, 1 tablespoon Baking Powder, 1/2 teaspoon Salt
In another large mixing bowl, cream together the butter, vegetable oil, and sugar until light and fluffy.
1/2 cup Butter, 1/2 cup Vegetable Oil, 2 cups Sugar
Add the eggs one at a time, mixing well after each addition. Then, stir in the vanilla extract and coconut extract.
4 Eggs, 2 teaspoons Vanilla Extract, 1 teaspoon Coconut Extract
Gradually add the dry ingredients to the wet mixture, alternating with the coconut milk. Begin and end with the dry ingredients. Mix until just combined.
1 cup Coconut Milk
Fold in the shredded coconut until evenly distributed in the batter.
1 cup Shredded Coconut
Divide the batter evenly between the prepared cake pans and smooth the tops with a spatula.
Bake in the preheated oven for 25-30 minutes, or until a toothpick inserted into the center of the cakes comes out clean.
Remove the cakes from the oven and allow them to cool in the pans for about 10 minutes before transferring them to a wire rack to cool completely.
Once the cakes are completely cooled, you can frost them with your favorite frosting (such as a coconut cream cheese frosting) and decorate with additional shredded coconut if desired.