Preheat the oven to 350°F (175°C). Grease a 9-inch round cake pan.

In a large bowl, cream together the softened butter and sugar until light and fluffy.

Beat in the eggs, one at a time, then stir in the vanilla extract.

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

Gradually add the dry ingredients to the wet mixture, alternating with the coconut milk, and mix until just combined.

Fold in the shredded coconut.

Pour the batter into the prepared cake pan and smooth the top.

Bake for 25-30 minutes or until a toothpick inserted into the center comes out clean.

Allow the cake to cool in the pan for 10 minutes before transferring to a wire rack to cool completely.

Serve with whipped cream if desired.