Preheat oven to 350°F (175°C). Grease and flour three 8-inch round cake pans.

In a large bowl, cream the 1 cup butter and 2 cups sugar on medium speed until light and fluffy, 3 to 4 minutes.

Beat in the eggs one at a time, then mix in the vanilla and coconut extracts.

In a separate bowl, whisk the flour, baking powder, and salt. Add to the butter mixture in three additions, alternating with the buttermilk, starting and ending with flour. Mix just until combined. Fold in ½ cup of the coconut.

Divide the batter among the pans and bake 20 to 23 minutes, until a toothpick comes out clean. Cool in pans 10 minutes, then turn out onto a rack to cool completely.

For the frosting, beat the cream cheese and ½ cup butter until smooth. Gradually add the powdered sugar, coconut extract, and salt, beating on low. Add 2 tablespoons heavy cream and beat on high until fluffy, adding more cream if needed. Fold in 1 cup of coconut by hand.

Place one layer on a plate, spread with 1 cup frosting, repeat with next layers. Frost the top and sides of the cake, then press the remaining toasted coconut onto the sides and top. Slice and serve.