Preheat the oven to 350°F (175°C) and prepare cake pans by greasing and dusting with flour.

Whisk together 2 cups of all-purpose flour, 1 tablespoon of baking powder, and a pinch of salt in a mixing bowl.

Cream together ½ cup of softened butter and 1 cup of sugar until light and fluffy, then mix in ½ cup of vegetable oil, 1 teaspoon of coconut extract, and 1 teaspoon of vanilla extract.

Add the eggs one at a time, alternating with the dry ingredients and 1 cup of coconut milk, mixing on low speed.

Divide the batter between the prepared cake pans and bake for 30-35 minutes until a toothpick comes out clean.

For the custard, whisk together 4 egg yolks, ½ cup of sugar, and ¼ cup of cornstarch, then stir in 2 cups of coconut milk and cook on medium heat until thickened.

Toast 1 cup of shredded coconut in a dry skillet until golden brown, about 3-5 minutes.

Beat together 8 ounces of cream cheese and 1 cup of powdered sugar until smooth, then mix in 1 teaspoon of coconut extract and fold in half of the toasted coconut.

Assemble the cake by layering the cooled cake with custard filling and frosting it with the cream cheese mixture.

Garnish with the remaining toasted coconut before serving.