Step 1
Preheat oven to 350 degrees F (175 degrees C).
Step 2
Grease and flour three 8-inch round cake pans.
Step 3
Stir cake mix 1 cup water vegetable oil eggs and 1 teaspoon coconut extract together in a bowl until moistened; beat with an electric mixer on medium speed for 2 minutes.
Step 4
Pour batter evenly into the prepared cake pans.
Step 5
Bake in preheated oven until the cakes are lightly browned and a toothpick inserted into the center of a cake comes out clean about 25 minutes.
Step 6
Let cakes cool in pans for 10 minutes; remove cakes from pans to finish cooling on racks at least 30 minutes.
Step 7
Beat butter with an electric mixer on low in a large bowl until creamy and smooth. Beat in 2 1/2 teaspoons coconut extract.
Step 8
Beat 1 cup confectioners' sugar into butter mixture until thoroughly combined; beat in 1 tablespoon heavy cream. Continue to beat in confectioners' sugar 1 cup at a time alternating with 1 tablespoon cream until the confectioners' sugar and cream have been incorporated and the frosting is smooth and creamy.
Step 9
With a long serrated knife level the tops of the 3 cakes. Place 1 cake onto a serving platter; frost the top of the cake with about 1/4 of the frosting. Sprinkle with about 1/3 cup flaked coconut.
Step 9
Place second cake layer on top of the first and frost and sprinkle with coconut as before. Place third layer on top of the second; frost top and sides with remaining frosting. Lightly press 1/3 cup of coconut evenly into sides of cake.