
Preheat oven to 325°F. Grease and line two 8-inch round cake pans with parchment paper.
In a medium bowl, whisk together flour, baking powder, baking soda, and salt.
In a large bowl, whisk together olive oil, sugar, coconut milk, sour cream, eggs, egg whites, vanilla, and coconut extract until well combined.
Sift in the dry ingredients and whisk until nearly combined.
Add shredded coconut and fold gently with a spatula until just combined (do not overmix).
Divide batter evenly between pans and bake 30–34 minutes, until a toothpick inserted comes out clean.
Cool in pans for 10 minutes, then transfer to a wire rack to cool completely.
Beat cream cheese and butter until smooth and creamy.
Add powdered sugar, vanilla, and salt. Mix from low to medium-high until fluffy. Adjust sugar for desired consistency.
Once cakes are fully cooled, spread about 1 1/4 cups frosting on the first layer.
Place second layer on top (top-side down), then frost top and sides.
Chill for 20–30 minutes for cleaner slices. Serve.