
This indulgent Coconut Cream Dream Cake transforms any gathering into a special occasion with its layers of moist coconut-infused cake soaked with creamy coconut filling and wrapped in velvety cream cheese frosting. The toasted coconut coating adds both visual appeal and a delightful crunch that perfectly complements the cake's dreamy texture.
I first made this cake for my mother's birthday after she reminisced about a coconut cake from her childhood. The moment she took her first bite, her eyes closed in pure bliss, and it's been our family's celebration cake ever since.
Ingredients
- All-purpose flour: Provides the sturdy yet tender structure needed to support the lush fillings
- Buttermilk: Creates an exceptionally moist crumb while adding subtle tanginess that balances the sweetness
- Cream of coconut: Like Coco Lopez offers intense tropical flavor that regular coconut milk cannot match
- Sweetened condensed milk: Adds silky richness to the filling while helping it set to the perfect consistency
- Cream cheese: Paired with butter creates a frosting with the ideal balance of tangy and sweet
- Shredded coconut: Appears in both the cake batter and as toasted decoration, providing varying textures
- Coconut extract: Enhances the natural coconut flavor without overpowering the delicate notes of the cake
Step-by-Step Instructions
- Prepare the Cake Batter:
- Begin by properly measuring your flour using the spoon-and-level method for accuracy. Cream the butter until it's truly pale and fluffy which can take 3-4 minutes in a stand mixer. When alternating dry ingredients with buttermilk, mix just until combined after each addition to prevent gluten development which would toughen the cake.
- Create Perfect Layers:
- Divide the batter precisely using a kitchen scale if possible. Each pan should have about the same weight of batter to ensure even baking. Tap filled pans gently on the counter twice to release any large air bubbles before baking. Position pans in the center of the oven, rotating halfway through if your oven has hot spots.
- Make the Coconut Cream Filling:
- Ensure the cream of coconut is well stirred before measuring as it tends to separate in the can. When whipping the heavy cream, chill both the cream and the bowl beforehand for the best volume. Fold the mixtures together with a light hand using a large spatula, cutting through the center and sweeping up from the bottom to maintain airiness.
- Prepare the Frosting:
- Allow cream cheese and butter to soften at room temperature for at least an hour for the smoothest results. Beat them together for a full 3 minutes before adding any sugar to eliminate lumps. Sift the powdered sugar to remove any clumps for perfectly smooth frosting. Add extracts after the sugar is incorporated to preserve their flavor potency.
- Toast the Coconut:
- Spread coconut in a thin, even layer for consistent browning. Watch it constantly as it can go from golden to burnt in seconds. Stir every 1-2 minutes for even color. Allow to cool completely before handling to maintain its delightful crunch.
- Assemble with Care:
- Level each cake layer with a serrated knife if necessary before assembly. When poking holes, use a fork to create deep channels for the filling to penetrate. Allow each layer of filling to soak in for about 5 minutes before adding frosting. Apply a thin crumb coat of frosting first, chill for 20 minutes, then apply the final coat for the cleanest finish.

The cream of coconut is truly the soul of this recipe. I discovered its magic during a trip to Puerto Rico where I tasted authentic Coco Lopez in a traditional coconut dessert. That rich, concentrated flavor completely transformed my understanding of coconut baking, and I've never returned to regular coconut milk for special desserts since.
Storage Guidelines
This cake keeps beautifully in the refrigerator for up to 5 days, stored in a covered cake container. The flavors actually develop and improve after the first day as the coconut cream has more time to permeate the cake layers. For longer storage, you can freeze individual slices wrapped tightly in plastic wrap and placed in freezer bags for up to 3 months. Thaw overnight in the refrigerator before serving.
Troubleshooting Tips
If your cake layers dome too much during baking, try reducing your oven temperature by 25 degrees and using cake strips soaked in water wrapped around your pans. These insulate the sides of the pans so the cake bakes more evenly. Should your cream cheese frosting become too soft while working, simply refrigerate it for 15-20 minutes to firm up to a spreadable consistency again.
Seasonal Variations
Transform this cake throughout the year by incorporating seasonal elements. In summer, layer fresh sliced mango between the cake layers alongside the coconut cream. During fall, add a teaspoon of cinnamon to the cake batter and garnish with candied pecans. Winter holidays call for a drizzle of white chocolate ganache and sugared cranberries, while spring celebrations shine with candied citrus slices and edible flowers.
Frequently Asked Questions
- → How do I toast coconut perfectly?
Spread shredded coconut evenly on a baking sheet. Bake at 325°F (165°C) for 5-10 minutes, stirring occasionally, until golden brown. Keep an eye on it as it can burn quickly.
- → Can I use canned coconut cream instead of cream of coconut?
You can use canned coconut cream, but note that cream of coconut is sweeter and adds more richness. Adjust the sweetness accordingly if substituting.
- → Can this cake be made ahead of time?
Yes, this cake can be prepared a day in advance. Refrigerate it overnight to allow the flavors to meld and the filling to soak in properly.
- → Can I substitute heavy cream in the filling?
You can use whipped coconut cream as a dairy-free alternative, but it may slightly alter the texture of the filling.
- → What’s the secret to moist cake layers?
Ensure you alternate wet and dry ingredients while mixing and avoid overmixing. Buttermilk and butter also contribute to a moist, tender crumb.