Heat the oven to 325°F (165°C). Grease and flour a 10-inch Bundt pan or 10-inch tube pan thoroughly, paying special attention to the center tube and decorative ridges.

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

Beat the softened butter and granulated sugar on medium speed for 4–5 minutes, until pale and noticeably fluffy. This thorough creaming step helps create the cake's fine pound-cake texture.

Add the room-temperature eggs one at a time, beating well after each addition and scraping down the bowl as needed. Mix in the vanilla extract and coconut extract.

Add the flour mixture in three additions, alternating with the coconut milk in two additions. Begin and end with the flour, mixing only until the batter is combined.

Fold the sweetened shredded coconut into the batter by hand. Transfer the batter to the prepared pan and smooth the top.

Bake for approximately 75–90 minutes, checking near the 75-minute mark. The cake is ready when a long wooden pick comes out clean or with a few moist crumbs and the top springs back lightly.

Cool the cake in the pan for 10–15 minutes, then turn it out onto a wire rack. Let it cool completely before glazing or slicing.

For the optional glaze, whisk the confectioners' sugar, coconut milk, and coconut extract or vanilla until smooth. Drizzle over the cooled cake and sprinkle with toasted shredded coconut.