If there is one dessert that feels like a hug on a plate, it has got to be this Coconut Velvet Cake Recipe. Imagine soft, perfectly moist layers infused with the rich essence of coconut, wrapped in a luxuriously creamy frosting that is just sweet enough to make every bite irresistible. This cake is not only a feast for your taste buds but also a celebration of texture and flavor that feels like a little tropical escape right at home. Whether you’re baking for a special occasion or just because you deserve something wonderfully indulgent, this Coconut Velvet Cake Recipe brings the perfect balance of elegance and comfort.

Ingredients You’ll Need
These ingredients are straightforward yet magical, each contributing its unique touch to build the tender crumb, moistness, and coconutty richness that make the cake unforgettable.
- 2 ½ cups all-purpose flour: The foundation for a light, fluffy cake.
- 2 teaspoons baking powder: Helps the cake rise beautifully.
- ½ teaspoon baking soda: Adds a gentle lift and enhances texture.
- ½ teaspoon salt: Balances sweetness and intensifies flavors.
- ½ cup unsweetened coconut milk (or buttermilk): Provides creaminess with a hint of coconut flavor.
- ½ cup whole milk: Adds moisture for a tender crumb.
- 1 cup unsalted butter (softened): Brings richness and contributes to the cake’s velvet texture.
- 1 ¾ cups granulated sugar: Sweetens and helps with cake structure.
- 4 large eggs: Bind everything together and add richness.
- 1 tablespoon vanilla extract: Enhances the overall flavor profile.
- 1 cup sweetened shredded coconut: Adds delightful bursts of chewy coconut.
- 2 tablespoons coconut oil (or vegetable oil): Helps keep the cake moist and tender.
- ½ cup sour cream: Boosts moisture and gives a slight tang for balance.
- 8 oz cream cheese (softened): For the luscious, tangy frosting.
- ½ cup unsalted butter (softened): Adds softness and richness to the frosting.
- 4 cups powdered sugar (sifted): Sweetens and thickens the frosting perfectly.
- 1 teaspoon vanilla extract: Infuses the frosting with warmth.
- ¼ cup coconut milk (or more): Adjusts frosting consistency and deepens coconut flavor.
- 1 ½ cups sweetened shredded coconut (for decorating): Adds a final flourish of texture and tropical charm.
How to Make Coconut Velvet Cake Recipe
Step 1: Preheat and Prepare Your Pans
Start by preheating your oven to 350°F (175°C). While it warms up, grease and flour two 9-inch round cake pans or line them with parchment paper to ensure your beautiful layers come out perfectly and without a hitch.
Step 2: Combine Dry Ingredients
In a medium bowl, whisk together the flour, baking powder, baking soda, and salt until fully blended. This step ensures your leavening agents and seasonings distribute evenly, setting the stage for a balanced rise and flavor.
Step 3: Mix the Wet Ingredients
In a separate bowl, stir together the coconut milk (or buttermilk), whole milk, coconut oil, and sour cream until smooth. This creamy mixture adds moisture and a subtle coconut essence that marries beautifully with the rest of the cake.
Step 4: Cream Butter and Sugar
Using a mixer, beat the softened butter and granulated sugar together on medium speed for 3 to 5 minutes. You want the mixture light and fluffy because this aeration is the secret to your final cake’s tender, velvet texture.
Step 5: Add Eggs and Vanilla
One at a time, add the eggs to the creamed butter and sugar, beating well between additions. Then pour in the vanilla extract. This gradual incorporation ensures a smooth batter and enhances complexity in flavor.
Step 6: Alternate Adding Dry and Wet Ingredients
Now, slowly add the dry mixture to your butter combo, alternating with the wet ingredients you prepared earlier. Start and end with the dry ingredients to keep the batter balanced. Mix just until combined—over-mixing can toughen the cake!
Step 7: Fold in Shredded Coconut
Gently fold the shredded coconut into the batter. These coconut pieces add texture and surprise bites that make this Coconut Velvet Cake Recipe so uniquely delightful.
Step 8: Divide Batter and Bake
Evenly distribute the batter between your prepared pans and smooth the tops. Pop the pans into the oven and bake for 25 to 30 minutes. You’ll know it’s done when a toothpick inserted comes out clean. Let the cakes cool in the pans for 10 minutes before removing them to a wire rack to cool completely.
Step 9: Prepare the Frosting
Beat together the softened cream cheese and butter until creamy and smooth. Gradually add the sifted powdered sugar, continuing to mix until fluffy and well combined. Stir in vanilla extract and enough coconut milk to reach your ideal frosting consistency—silky, spreadable, and loaded with coconut flavor.
Step 10: Assemble and Decorate
Once your cake layers are completely cool, place one layer on your serving plate and generously spread frosting on top. Add the second layer and cover the entire cake with the remaining frosting. Press shredded coconut onto the sides and sprinkle more on top for a beautiful, snowy coconut finish that’s as pleasing to the eyes as it is to the palate.
How to Serve Coconut Velvet Cake Recipe

Garnishes
Adding extra toasted coconut flakes on top not only amps up the coconut flavor but adds a lovely crunch and golden color contrast. For a fresh touch, a few slices of ripe mango or a sprinkle of edible flowers can brighten the presentation and taste wonderfully with the cake.
Side Dishes
This cake pairs wonderfully with a simple cup of freshly brewed coffee or a chilled tropical fruit punch. You might also serve it with a scoop of vanilla bean ice cream or a dollop of whipped cream to complement the richness without overpowering it.
Creative Ways to Present
Try serving this Coconut Velvet Cake Recipe as mini cupcakes for your next gathering, decorating each with a swirl of cream cheese frosting and a piece of toasted coconut. Another elegant idea is layering the cake with fresh berries between each layer for bursts of freshness and color.
Make Ahead and Storage
Storing Leftovers
Keep your leftover cake tightly covered in an airtight container at room temperature for up to two days, or refrigerate it if your kitchen is warm. This helps maintain freshness and prevents the cake and frosting from drying out.
Freezing
This cake freezes beautifully! Wrap individual slices or entire layers tightly in plastic wrap and then place them in a freezer-safe container. Frozen properly, they can last up to three months. Thaw overnight in the fridge for best results.
Reheating
If you prefer your cake slightly warm, gently heat slices in the microwave for 10 to 15 seconds. Be cautious not to overheat, as cream cheese frosting can melt and lose its perfect texture.
FAQs
Can I use coconut flour instead of all-purpose flour?
Coconut flour behaves very differently from all-purpose flour and absorbs a lot more liquid, so it is not recommended to substitute it directly in this Coconut Velvet Cake Recipe. Stick with all-purpose flour for the best texture.
Is there a dairy-free way to make this cake?
Yes! Use dairy-free butter, substitute the cream cheese frosting with coconut cream whipped with powdered sugar, and ensure your milk choices are also plant-based. This way, you maintain that lovely coconut flavor while keeping it vegan-friendly.
Can I make this cake gluten-free?
You can try a gluten-free all-purpose flour blend as a substitute, but results may vary. For best results, tweak the recipe accordingly and consider adding xanthan gum to improve texture.
How long does this cake stay fresh?
When properly stored, this cake stays fresh for up to 3-4 days refrigerated. The cream cheese frosting may hold up best chilled rather than at room temperature, depending on your climate.
What is the secret to making the cake so moist?
The combination of coconut milk, sour cream, and coconut oil in this Coconut Velvet Cake Recipe is key to achieving that luscious, moist crumb that feels like velvet with every bite.
Final Thoughts
This Coconut Velvet Cake Recipe is truly one of those desserts you’ll find yourself craving again and again. Its perfect balance of tender cake layers and creamy frosting feels like a celebration in every bite. Don’t hesitate to bring a bit of tropical magic into your kitchen — bake this cake for friends, family, or simply to treat yourself. I promise it’s worth every delicious moment!
