Southern desserts have always had a special place in my kitchen, especially tall layer cakes.

A classic coconut cake is usually loaded with heavy milk and cream, which can be hard on your stomach if you need to avoid dairy.

I wanted to make a version of this traditional dessert that anyone on a dairy free diet can still enjoy without missing out.

This dairy free southern coconut cake uses canned coconut milk and plant based butter to keep every slice soft and rich.

It is fluffy, sweet, and covered in shredded coconut that makes every bite taste just like the original.

Why This Recipe Is a Keeper

Incredible Flavor – Using real coconut milk, extract, and shredded flakes creates an authentic, rich tropical taste in every bite.

Tender Crumb – Cake flour gives these layers a bakery-quality texture that melts smoothly on your tongue.

No Dairy Needed – You get all the classic Southern richness without any dairy, so nobody has to miss out.

Ultra Moist – Canned coconut milk adds natural fats that keep the cake soft for days after baking.

Here’s What You’ll Need

For the Cake

3 cups Cake Flour
2 1/2 tsp Baking Powder
1/2 tsp Salt
1 cup Dairy Free Butter, Softened
1 3/4 cups Granulated Sugar
4 Large Eggs, Room Temperature
2 tsp Vanilla Extract
1 tsp Coconut Extract
1 1/4 cups Full Fat Canned Coconut Milk, Room Temperature
1/2 cup Sweetened Shredded Coconut

For the Frosting

1 1/2 cups Dairy Free Butter, Softened
5 cups Powdered Sugar, Sifted
3 tbsp Full Fat Canned Coconut Milk, Room Temperature
1 tsp Vanilla Extract
1 tsp Coconut Extract
1/8 tsp Salt
2 cups Sweetened Shredded Coconut

How to Make It

Step 1

Preheat the oven to 350°F. Grease two 9-inch round cake pans and line the bottoms with parchment paper.

Step 2

In a medium bowl, whisk together the cake flour, baking powder, and salt.

Step 3

In a large bowl, beat the butter and sugar on medium-high speed for 3 to 4 minutes, until pale and fluffy. Add the eggs one at a time, beating well after each, then beat in the vanilla and coconut extract.

Step 4

With the mixer on low, add the flour mixture in three additions, alternating with the coconut milk, beginning and ending with the flour. Fold in the shredded coconut.

Step 5

Divide the batter between the pans and bake for 28 to 32 minutes, until lightly golden and a toothpick comes out clean. Cool in the pans for 10 minutes, then turn out onto a wire rack to cool completely.

Step 6

For the frosting, beat the butter on medium speed for 2 minutes until creamy. Gradually add the powdered sugar on low, then add the coconut milk, vanilla, coconut extract, and salt and beat on medium-high for 3 minutes until light and fluffy.

Step 7

Place one cake layer on a serving plate and spread about 1 cup of frosting over it. Top with the second layer, then frost the top and sides of the cake.

Step 8

Press the shredded coconut generously all over the top and sides. Chill for 20 minutes to set the frosting before slicing.

Recipe Tips

Shake the Canned Coconut Milk First

Canned full-fat coconut milk naturally separates into thick white cream on top and clear liquid at the bottom. Before you measure it out for the cake or frosting, pour the entire can into a bowl and whisk it until it is completely smooth.

If you skip this step, you might end up measuring only water or only fat. Keeping the liquid fully blended gives the cake layers their rich moisture and tender crumb.

Use Baking Sticks Instead of Tub Butter

For both the cake and the frosting, I recommend using dairy-free butter that comes in solid stick form rather than a tub.

Spreadable butter from a plastic tub has extra water whipped into it to make it soft. That extra water can make your cake dense and cause your frosting to turn into a runny mess.

Bring All Cold Ingredients to Room Temperature

You’ll get the best results if you take the eggs, dairy-free butter, and coconut milk out of the fridge about an hour before baking.

If the coconut milk or eggs are cold, they will make the dairy-free butter solidify and curdle during mixing. Warm ingredients blend together into an even batter that rises nicely in the oven.

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