Preheat your oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
In a medium bowl, sift together the flour, baking powder, baking soda, and salt. Set aside.
In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.
Beat in the eggs, one at a time, until well combined. Stir in the vanilla extract.
Gradually add the dry ingredients to the wet ingredients, alternating with the coconut milk and sour cream. Mix until just combined, being careful not to overmix.
Gently fold in the shredded coconut and white chocolate chips until evenly distributed throughout the batter.
Divide the batter evenly between the prepared cake pans, spreading it out into an even layer.
Bake in the preheated oven for 25-30 minutes, or until a toothpick inserted into the center of the cakes comes out clean.
Remove the cakes from the oven and allow them to cool in the pans for 10 minutes before transferring them to a wire rack to cool completely.
While the cakes are cooling, prepare the White Chocolate Cream Cheese Frosting. In a mixing bowl, beat together the softened cream cheese and butter until smooth and creamy.
Gradually add the powdered sugar and vanilla extract, mixing until smooth and well combined.
Stir in the melted white chocolate until incorporated into the frosting.
Once the cakes have cooled completely, place one layer on a serving platter or cake stand. Spread a generous layer of the White Chocolate Cream Cheese Frosting over the top.
Place the second layer of cake on top and frost the top and sides with the remaining frosting.
Optional: Garnish with additional shredded coconut and white chocolate shavings for an extra touch of elegance.
Slice, serve, and enjoy the divine decadence of Coconut White Chocolate Cake!