Prepare the Oven and Pans
Preheat your oven to 350°F (175°C). Thoroughly grease two 8-inch cake pans and line the bottoms with parchment paper for easy removal. This ensures your cake layers won't stick and will come out perfectly intact.
Make the Cake Batter
In a stand mixer bowl, combine the cake mix, coconut milk, egg whites, and oil. Beat on low speed for 30 seconds, then increase to medium speed and beat for 2 minutes until smooth. Add the coconut extract and ½ cup of shredded coconut, stirring gently until incorporated. Divide the thick batter evenly between the two prepared pans and spread in an even layer.
Bake the Cake Layers
Bake the cakes for 30-33 minutes, or until they spring back when lightly touched in the center. Allow the cakes to cool in their pans for 15 minutes before transferring to a wire rack to cool completely. This cooling period is crucial for the cake structure.
Toast the Coconut
While the cakes are cooling, spread the remaining 1 cup of shredded coconut on a parchment-lined baking sheet. Bake at 350°F for 6-7 minutes, stirring halfway through to ensure even browning. Remove from the oven when golden and let cool completely.
Layer the Cake
Once the cakes are completely cool, cut each layer in half horizontally to create four layers. For cleaner cuts, consider freezing the layers briefly. Spread ⅓ of the lemon curd on each of the first three layers, then top with the final cake layer.
Make the Frosting
In a stand mixer fitted with the paddle attachment, beat the softened butter and salt until light and fluffy. Add the coconut extract and powdered sugar, mixing on low speed until the sugar is incorporated. Add 2 tablespoons of coconut milk and increase the speed to medium-high, beating for 2-3 minutes until smooth and creamy. If needed, add more coconut milk to reach your desired consistency.
Frost and Decorate
Frost the entire layered cake with the coconut frosting, covering the top and sides evenly. Sprinkle the toasted coconut all over the frosted cake. If desired, add decorative touches like Peeps or chocolate eggs for a festive presentation.