Preheat the Oven:

Preheat your oven to 325°F (165°C). Grease and flour a loaf pan or bundt pan thoroughly to prevent sticking.

Cream Butter and Sugar:

In a large mixing bowl, beat the butter and sugar together with a mixer on medium speed until light and fluffy, about 3-5 minutes.

Add Eggs and Extracts:

Add the eggs one at a time, beating well after each addition. Mix in the vanilla extract and coconut extract.

Mix Wet Ingredients:

In a separate bowl, whisk together the coconut milk and sour cream until smooth.

Combine Dry Ingredients:

In another bowl, sift together the flour, baking powder, and salt.

Combine Wet and Dry Mixtures:

Gradually add the dry ingredients to the butter mixture, alternating with the coconut milk mixture. Begin and end with the dry ingredients. Mix until just combined.

Fold in Coconut:

Gently fold in the shredded coconut using a spatula. Do not overmix.

Bake the Cake:

Pour the batter into the prepared pan, spreading it evenly. Bake for 60-70 minutes, or until a toothpick inserted into the center comes out clean.

Cool the Cake:

Let the cake cool in the pan for 10 minutes, then transfer it to a cooling rack to cool completely.

Make the Glaze:

In a small bowl, whisk together the powdered sugar, coconut milk, and coconut extract until smooth.

Glaze the Cake:

Drizzle the glaze over the cooled cake. Sprinkle with additional shredded coconut if desired.