Prep the pan and oven: Preheat your oven to 350°F (175°C). Grease a 9x5-inch loaf pan and line it with a parchment sling for easy removal.

Combine dry ingredients: In a bowl, whisk together flour, baking powder, baking soda, and salt. Stir in the shredded coconut. Set aside.

Cream butter and sugar: In a large mixing bowl, beat the softened butter and sugar together until light and fluffy, about 2–3 minutes. This step helps create lift.

Add eggs and flavorings: Beat in the eggs one at a time, mixing well after each. Stir in the vanilla and coconut extract if using.

Alternate dry and wet: Add half the dry mixture to the bowl and mix on low just until combined. Pour in the coconut milk and mix gently. Add the remaining dry mixture and stir until no streaks of flour remain. Do not overmix.

Fill the pan: Scrape the batter into the prepared loaf pan and smooth the top. If you like, sprinkle a little extra shredded coconut over the batter.

Bake: Bake for 50–60 minutes, or until the top is golden and a toothpick comes out with a few moist crumbs. If the top is browning too quickly, tent with foil for the last 10–15 minutes.

Cool: Let the loaf cool in the pan for 10–15 minutes, then lift it out using the parchment and transfer to a wire rack to cool completely.

Glaze (optional): Whisk powdered sugar, a pinch of salt, and enough coconut milk to make a thick but pourable glaze. Drizzle over the cooled loaf and top with toasted coconut.

Slice and serve: Use a serrated knife for neat slices. Enjoy plain, with fresh fruit, or a dollop of yogurt or whipped cream.