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

In a large bowl, cream together the butter and sugar until light and fluffy, about 3 to 5 minutes.

Add the eggs one at a time, mixing well after each addition, and then add the vanilla extract.

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

Gradually combine the dry ingredients with the butter mixture, alternating with the coconut milk, mixing until just incorporated.

Fold in the shredded coconut.

Pour the batter into the prepared cake pan.

Bake for 30-35 minutes, or until a toothpick inserted in the center comes out clean.

Let the cake cool in the pan for about 10 minutes before inverting it onto a wire rack.

Optionally, create a simple glaze by mixing shredded coconut with reserved coconut milk or confectioner's sugar to drizzle over the cooled cake.