Preheat oven to 325°F and place a piece of parchment paper on your baking sheet

Spread 1 cup of shredded coconut onto your sheet pan into one layer. Bake for 5-10 minutes, stirring once or twice, to toast your coconut. Remove and pour into a bowl. This will be for your topping at the end!

Now, preheat oven to 350°F. Grease an 11x17-inch baking sheet and line with parchment paper if desired.

In a large bowl, whisk together flour, sugar, baking soda, and salt.

In a medium pot, add your butter, coconut oil, and coconut milk. Place over medium heat and stir until melted and steaming (not boiling). Remove from the heat

Pour the warm butter mixture into the dry ingredients and whisk until just combined.

Whisk in sour cream, eggs, vanilla, and coconut extract until smooth.

Fold in the shredded coconut (not the toasted coconut!).

Pour the batter into the prepared pan and spread evenly.

Bake for 20-25 minutes until a toothpick comes out clean.

While the cake bakes, make your frosting. In a pot, melt butter with coconut milk over medium heat.

Remove from heat and whisk in powdered sugar, vanilla, coconut extract, and salt until smooth

When the cake comes out of the oven, immediately pour the warm frosting evenly over the hot cake. Gently spread with a spatula as needed and top with toasted shredded coconut

Let the cake cool completely before serving