Creating the Fluffy Coconut Cake is straightforward with these easy-to-follow steps:

1. Preheat the Oven: Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
2. Mix Dry Ingredients: In a large mixing bowl, sift together the all-purpose flour, baking powder, and salt.
3. Combine Wet Ingredients: In another bowl, whisk together the coconut milk, vegetable oil, eggs, and vanilla extract until well blended.
4. Combine Mixtures: Gradually add the wet ingredients to the dry ingredients, stirring gently until you achieve a smooth batter.
5. Fold in Coconut: Carefully fold in the shredded coconut until evenly distributed throughout the batter.
6. Divide Batter: Pour the batter equally into the prepared cake pans.
7. Bake: Place in the preheated oven and bake for 30-35 minutes, or until a toothpick inserted into the center comes out clean.
8. Cool: Once baked, remove from the oven and allow the cakes to cool in the pans for 10 minutes. Then transfer them to wire racks to cool completely.
9. Frosting (Optional): If desired, you can frost the cakes with a coconut cream frosting or whipped cream.
10. Dust with Powdered Sugar: For a final touch, lightly dust the cooled cake with powdered sugar before serving.

These steps will guide you to create a stunning Fluffy Coconut Cake that is sure to be a hit at your next gathering.