1. Preheat oven to 325°F (165°C). Grease and flour a 9×5-inch loaf pan or a bundt pan.

2. In a large bowl, cream the softened butter and granulated sugar until pale and fluffy, about 3–4 minutes.

3. Add eggs one at a time, beating well after each addition. Stir in the coconut extract.

4. Whisk together the all-purpose flour, baking powder, and salt in a separate bowl.

5. Add the dry ingredients to the butter mixture alternately with the coconut milk, beginning and ending with the dry ingredients. Mix until just combined.

6. Pour the batter into the prepared pan and smooth the top with a spatula.

7. Bake for 60–70 minutes (time may vary slightly by oven), or until a toothpick inserted in the center comes out clean.

8. Let the cake cool in the pan for 10 minutes, then transfer to a wire rack to cool completely. Dust with powdered sugar or top with a simple glaze and toasted coconut if desired.