
Coconut Texas Sheet Cake is the kind of crowd-pleaser that never lasts long at potlucks or family gatherings. With a tender crumb and sweet coconut frosting, this cake is both nostalgia and celebration in every slice.
The first time I brought this cake to a church picnic it disappeared in minutes and now I am asked for it every spring.
Ingredients
- Unsalted butter: rich flavor and a tender cake be sure to use real butter for the best taste
- Water: helps melt butter and creates the base for a soft crumb use filtered water if possible
- Granulated sugar: for sweetness choose fine sugar for a smoother batter
- All-purpose flour: gives structure to the cake sift if yours is clumpy
- Salt and baking soda: lift and balance flavors always check your baking soda is fresh
- Eggs: bind everything together room temperature eggs create a fluffier texture
- Sour cream: adds tang and moisture choose full fat for richness
- Vanilla extract: enhances the coconut and butter go for pure vanilla if you can
- Sweetened shredded coconut: doubles down on coconut flavor check for freshness and avoid any stale odor
- Powdered sugar: makes the frosting silky smooth sift before using to avoid lumps
- Milk: loosens the frosting so it spreads easily whole milk works best
Step-by-Step Instructions
- Preheat and Prep:
- Set your oven to moderate heat and completely grease your sheet pan so the cake releases cleanly later
- Melt Butter and Water:
- Place your butter and water in a saucepan set on the stove and slowly bring to a simmer until the butter melts fully this step makes the cake extra moist
- Combine Dry Ingredients:
- Whisk together flour sugar salt and baking soda in a large bowl making sure each ingredient is evenly spread throughout the mix
- Mix Wet and Dry:
- Pour the hot butter water blend over the dry mixture and stir until just combined this avoids overworking the batter
- Add Eggs Sour Cream and Vanilla:
- Crack in the eggs dollop in sour cream and pour in the vanilla blend until you see no streaks of flour and the batter is smooth and glossy
- Fold in Coconut:
- Sprinkle in coconut and gently mix so you do not knock out any air from the batter
- Pour and Bake:
- Spread the batter evenly in your pan smoothing the top with a spatula and bake until a toothpick poked in the center comes out clean with a few crumbs
- Start the Frosting:
- As the cake bakes put butter and milk in a saucepan on the stove heating until the butter is liquid but not brown
- Make Frosting Smooth:
- Pull the pan off the heat and sift powdered sugar directly into the pot whisking quickly so it melts smoothly add in vanilla for depth
- Add Coconut:
- Mix in coconut so the frosting is sweet and textured careful not to make it too thick
- Frost Warm Cake:
- Spread this frosting over your still warm cake using a spatula for an even layer the warmth lets the glaze seep slightly into the top
- Cool and Serve:
- Allow the cake to set so the frosting holds its shape then slice into neat squares and serve on your prettiest platter

My favorite part is the frosting the coconut on top becomes just the right amount of chewy. Sharing this at Easter last year brought back memories of my grandmother decorating cakes in her tiny kitchen with the same simple ingredients.
How to Store Leftovers
Once fully cool store slices in an airtight container at room temperature for up to three days. If you want to keep it even longer wrap individual squares tightly and freeze for up to two months. Thaw at room temperature before serving for the best texture.
Ingredient Substitutions
If you are out of sour cream plain Greek yogurt works just as well to keep things moist. For extra coconut flavor try coconut extract instead of or along with the vanilla. You can use unsweetened shredded coconut if you prefer a less sweet cake but be sure to taste the frosting before icing the whole cake.
Serving Suggestions
This cake shines with a sprinkle of toasted coconut on top. Pair with strong coffee or a tall glass of cold milk for a comforting afternoon treat. It is also wonderful with fresh berries or even a scoop of vanilla ice cream for special occasions.

A Slice of History
Texas sheet cake has deep roots in Southern baking lore known for easy mixing and ultra-moist crumb. Adding coconut is a twist you will find in family kitchens throughout the region especially for spring celebrations and holiday potlucks.
Frequently Asked Questions
- → How do I keep the cake moist?
Sour cream and butter ensure a moist, tender crumb. Avoid overbaking and check doneness with a toothpick.
- → Can I use unsweetened coconut?
Yes, unsweetened coconut can replace sweetened, though the cake may be slightly less sweet. Adjust sugar if desired.
- → Is it necessary to frost the cake while warm?
Spreading the frosting on a warm cake allows it to soak slightly into the surface, creating a luscious layer.
- → How should I store leftovers?
Keep the cake covered at room temperature for up to 3 days, or refrigerate for longer freshness.
- → Can this cake be frozen?
Yes, the cake freezes well. Slice into squares, separate with parchment, and store in an airtight container.