Preheat oven to 350 Degrees
Grease or spray 2 (9 inch) round cake pans
Cream butter and sugar on medium-high speed for 3-5 minutes with paddle attachment
Crack eggs in bowl. Add eggs 1 at a time, scraping down the bowl during mixing.
Add the vanilla and mix well
In separate bowl sift together the flour, baking powder, baking soda and salt. On low speed alternately add flour mixer and milk in 3 parts beginning and ending with dry ingredients. Mix until just combined. Do not overmix
Fold in 4 ounces of coconut with a rubber spatula. Pour into 2 (9) inch prepared pans
Smooth out top with knife. Bake in center of oven for 45-55 minutes, until the tops are browned and cake tester comes out clean.
Cook for 30 minutes on baking rack.
Frosting
Combine 1 pound room temperature cream cheese, 2 sticks unsalted butter, adn 3/4 tsp vanilla. Beat on low until mixed good. Add 1 pound confectioners sugar and mix until smooth (don't whip.
Frost cake then sprinkle coconut all over and on sides