Step 1: Preheat the Oven

Start by preheating your oven to 350°F (175°C). Grease and flour three 8-inch round cake pans, or line them with parchment paper to prevent sticking. This will ensure your cake layers come out smoothly.

Step 2: Prepare the Dry Ingredients

In a medium-sized bowl, whisk together the flour, baking powder, baking soda, and salt. Set this mixture aside, as it will be added to the wet ingredients in steps to come.

Step 3: Cream the Butter and Sugar

In a large mixing bowl, beat the softened butter and granulated sugar together for 2-3 minutes until light and fluffy. Add the eggs one at a time, making sure to beat well after each addition. Then, mix in the vanilla extract for added flavor.

Step 4: Alternate Adding Dry Ingredients and Coconut Milk

With the mixer on low speed, gradually add the dry ingredients to the butter mixture in three separate additions, alternating with the coconut milk. Start and finish with the dry ingredients. Gently fold in the drained crushed pineapple, ensuring it is evenly distributed throughout the batter.

Step 5: Bake the Cake Layers

Divide the batter evenly among the prepared cake pans and smooth the tops. Bake for 22-28 minutes, or until a toothpick inserted into the center of the cakes comes out clean. Allow the cakes to cool in the pans for 10 minutes before transferring them to a wire rack to cool completely.

Step 6: Make the Pineapple Filling

In a small saucepan, combine the crushed pineapple, granulated sugar, cornstarch, and pineapple juice. Cook the mixture over medium heat, stirring constantly, until it thickens (3-5 minutes). Allow it to cool completely before assembling the cake.

Step 7: Prepare the Coconut Frosting

In a large bowl, beat the softened cream cheese and butter together until smooth and creamy. Gradually add the powdered sugar, 1 cup at a time, beating well after each addition. Once combined, mix in the coconut milk and vanilla extract until the frosting is smooth and fluffy.

Step 8: Assemble the Cake

Place one cake layer on a serving plate. Spread a thin layer of pineapple filling on top, followed by a layer of coconut frosting. Repeat this process with the second layer. Place the final layer of cake on top and frost the entire cake with the remaining coconut frosting.

Step 9: Decorate and Serve

Press shredded coconut onto the sides and top of the cake. Garnish with toasted shredded coconut and fresh pineapple slices for a beautiful finishing touch. Refrigerate the cake for 30 minutes to allow it to set before slicing and serving.