Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.

In a large mixing bowl, combine the flour, sugar, baking powder, baking soda, and salt.

In another bowl, whisk together the coconut milk, melted coconut oil, applesauce, and vanilla extract.

Pour the wet ingredients into the dry ingredients and mix until just combined.

Fold in the shredded coconut.

Divide the batter evenly between the prepared cake pans and smooth the tops.

Bake for 25-30 minutes, or until a toothpick inserted in the center comes out clean.

Allow the cakes to cool in the pans for 10 minutes, then transfer to a wire rack to cool completely.

For the frosting, beat together coconut cream and powdered sugar until smooth.

Once the cakes are cooled, frost between the layers and on top. Sprinkle additional shredded coconut on top to decorate.

Serve and enjoy!