Okay, coconut fans, brace yourselves! Have I got a treat for you today that’s going to transport you straight to a tropical paradise with every single bite. Meet the Coconut Dream Cake – and trust me, the name is no exaggeration! We’re talking layers of unbelievably tender coconut cake, sandwiching a tangy, sweet coconut-packed sour cream filling you won’t forget, all enveloped in a cloud of fluffy coconut buttercream. It’s the ultimate coconut experience, a true showstopper that tastes even better than it looks. Get ready to swoon!

Why You’ll Love This Coconut Dream Cake
You are seriously going to adore making and sharing this cake for so many reasons! It’s truly a coconut lover’s ultimate fantasy, delivering wave after wave of rich coconut flavor thanks to its presence in the moist cake layers, the dreamy sour cream filling, and the fluffy buttercream frosting. The textures are just heavenly too; you get that incredibly tender crumb from the cake, a cool, creamy tang from the unique filling, and delightful chewiness from all the shredded coconut woven throughout. And while it looks like it came straight from a fancy bakery, the process is surprisingly straightforward, making it a totally achievable showstopper dessert perfect for birthdays, holidays, or simply turning an ordinary day into something special.
Ingredients for this Coconut Dream Cake
Let’s chat about what you’ll need to create this coconut masterpiece.
For the cake layers, start with all-purpose flour to provide structure. Baking powder gives the cake its beautiful rise, and a pinch of salt helps enhance all the flavors. Granulated sugar adds both sweetness and moisture.
Large eggs bring richness and help bind the ingredients together. Vegetable oil is key to making the cake incredibly moist, while whole milk contributes even more softness and richness. Coconut extract is essential for that tropical flavor, and shredded coconut is mixed right into the batter to add both flavor and texture.
For the sour cream filling, you’ll combine tangy sour cream with granulated sugar and shredded coconut. The filling is thick, sweet, and just a bit chewy. A splash of coconut extract boosts the coconut flavor even more.
For the buttercream, you’ll use butter for flavor and vegetable shortening for stability and smoothness. Coconut extract ties everything together with that signature taste. Powdered sugar thickens and sweetens the frosting, while a bit of heavy cream or milk ensures a soft and spreadable texture. To finish, shredded coconut is pressed all around the cake, adding a beautiful, classic look and extra texture.
Just a friendly heads-up, you’ll find the complete ingredient list with exact measurements in the recipe card right below this article.
How to Make the Coconut Dream Cake
Step 1: Prep Oven and Pans
Alright, let’s get baking! First, preheat your oven to a cozy 350°F (175°C). Now, grab three 8-inch round cake pans. You’ll want to grease and flour them really well – this little step is your insurance policy against stuck cake layers later on!
Step 2: Mix the Cake Batter
In a nice big bowl, whisk together your dry ingredients: the flour, baking powder, salt, and granulated sugar. Give them a good mix. Now, add in the wet ingredients: the eggs, oil, coconut extract, and milk. Using an electric mixer on medium speed, blend everything together just until it’s all incorporated. This should only take about 1 to 2 minutes – be careful not to overdo it! Finally, gently fold in the shredded coconut using a spatula.
Step 3: Bake the Cake Layers
Carefully divide your lovely batter evenly among the three prepared pans. Slide them into your preheated oven. Bake for about 23 to 25 minutes. You’re looking for the cakes to be beautifully golden brown and feel set when you gently touch the center. The trusty toothpick test works wonders here: poke one into the center of a cake, and if it comes out clean or with just a few moist crumbs clinging to it, they’re ready!
Step 4: Cool the Cakes
Once out of the oven, let the cakes cool in their pans on a wire rack for about 10 minutes. This helps them firm up a bit. Then, carefully flip them out of the pans directly onto the wire rack to cool completely. Resist the urge to frost them while warm – complete cooling is essential!
Step 5: Make the Coconut Sour Cream Filling
While those cakes are cooling down, let’s whip up that incredible filling. It’s super easy! In a medium bowl, just combine the sour cream, granulated sugar, shredded coconut, and coconut extract. Stir it all together until everything is nicely mixed and the coconut is evenly distributed. Cover the bowl and stash it in the refrigerator until you’re ready to build your cake. Pro tip: this filling tastes even better if you make it a day ahead!
Step 6: Make the Coconut Buttercream
Frosting time! In the bowl of your stand mixer (or using a large bowl and a hand mixer), beat the butter and shortening together on medium speed until they’re nice and creamy. Mix in the coconut extract. Now, add about half of the powdered sugar and the 2 tablespoons of heavy cream.
Start mixing on low speed (trust me, you want to avoid a sugar snowstorm!) until the sugar starts to incorporate, then crank it up to medium-high and beat until it’s wonderfully smooth and fluffy. Repeat this with the remaining powdered sugar. If the frosting feels a tad too stiff for easy spreading, just mix in another tablespoon of cream or milk until it reaches that perfect, dreamy texture.
Step 7: Assemble the Cake
Here comes the fun part – putting it all together! Place one completely cooled cake layer onto your serving plate or cake stand. Fit a piping bag with a round tip (or just snip the corner off a zip-top bag) and pipe a border of buttercream around the top edge of the cake layer. This acts like a little dam. Spoon about half of your chilled coconut filling inside this border and gently spread it out evenly. Carefully place the second cake layer on top. Repeat the process: pipe another frosting border, add the rest of the filling, and spread it out. Top it off with the third and final cake layer.
Step 8: Frost and Decorate
Now, take the rest of your glorious buttercream and frost the entire cake – the top and all around the sides. Smooth it out as best you can, but don’t stress about perfection, because we’re about to cover it in coconut! Take handfuls of shredded coconut and gently press it onto the frosting all over the sides and top of the cake until it’s completely coated. It’s going to look stunning!
Step 9: Chill Before Serving
Okay, this step is super important for achieving true Coconut Dream Cake status! Carefully cover your masterpiece (a cake dome is perfect, but you can loosely tent it with plastic wrap if needed) and place it in the refrigerator. Let it chill for at least a few hours before you slice into it.
This chill time lets all those amazing flavors meld together and allows the filling to firm up perfectly. Honestly, if you have the patience, chilling it for a day (or even up to three, as the original recipe suggests!) makes it even more incredible.
Pro Tips for Making the Recipe
Want to make sure your cake is absolutely perfect? Here are a few friendly tips! Be gentle when mixing the cake batter after adding the wet ingredients; mixing just until combined prevents a tough cake and keeps it wonderfully tender. Patience is key when cooling the cake layers – they must be completely cool before frosting, or you risk a melty mess.
For the smoothest buttercream, ensure your butter and shortening are nicely softened to room temperature before you start creaming them. If your finished frosting seems too thick, add more cream or milk just a tiny bit at a time; if it’s too thin, add a little more powdered sugar. And please don’t skip the chilling step for the finished cake; it truly makes a difference in both the flavor and the texture, letting everything settle and meld beautifully.
How to Serve
This Coconut Dream Cake is definitely at its best when served chilled, directly from the refrigerator, as the cold temperature really enhances the creamy filling and frosting. A generous slice needs little accompaniment, maybe just a simple cup of coffee or tea to cut through the richness.
It’s naturally suited for celebrations like birthdays or holidays, instantly making any occasion feel more special, but it’s honestly so delicious you might find yourself baking it just because! If it has been chilling for quite a while, letting it sit at room temperature for about 10 to 15 minutes can make slicing a little easier.
Make Ahead and Storage
Storing Leftovers
If you happen to have leftovers (which might be surprising!), store the cake well-covered in the refrigerator. Using a cake dome is ideal to protect that beautiful coconut coating without squishing it. Otherwise, you can loosely tent it with plastic wrap or use a dedicated airtight cake container. It will keep beautifully for 4 to 5 days, and many people find the flavor deepens and improves after the first day!
Freezing
Good news, this cake freezes quite well! You can freeze individual slices by wrapping them tightly first in plastic wrap, then in aluminum foil. You could also freeze the whole cake, though protecting the coconut coating can be tricky; try freezing it uncovered for an hour or so until the frosting is firm, then wrap it thoroughly in plastic wrap and foil. It should keep well in the freezer for up to 2 months. To enjoy, thaw it overnight in the refrigerator. Note that the texture of the exterior shredded coconut might be slightly softer after thawing, but it will still taste fantastic.
FAQs
Can I use low fat milk or sour cream?
For the absolute best results in terms of flavor and texture, sticking with whole milk and full fat sour cream is really the way to go. The fat content plays a big role in the cake’s moisture and the filling’s richness. Using lower fat versions might lead to a cake that’s not quite as tender or a filling that’s a bit thinner than intended.
Do I have to use shortening in the frosting? Can I use all butter?
While you technically can use all butter, the combination of butter and shortening is recommended for this frosting. The shortening adds stability, especially if your kitchen is warm, and contributes to a wonderfully smooth, less greasy texture. If you opt for all butter, be aware the frosting will be softer at room temperature and you might need to add a touch more powdered sugar for structure.
My filling seems a little runny What can I do?
First, double check that you used full fat sour cream and measured the sugar accurately. The filling is naturally soft when first mixed but relies heavily on chilling to thicken up properly. Ensure it was well chilled before you started assembling the cake. The most important thing is to chill the fully assembled cake for several hours, or preferably overnight; this allows the filling to set firmly between the layers.
Can I make this recipe into cupcakes?
Yes, absolutely! This batter works beautifully for cupcakes. Just line your muffin tins, fill the liners about two thirds full, and bake at 350°F (175°C). Cupcakes bake faster than cake layers, so start checking them for doneness around the 18 to 20 minute mark using the toothpick test. You won’t be able to layer the filling in the same way, but you could core the cooled cupcakes and spoon some filling inside before frosting, or simply pile on that delicious coconut buttercream and sprinkle generously with shredded coconut.
There you have it, your complete guide to creating this truly spectacular Coconut Dream Cake! It’s a rewarding bake that tastes like pure sunshine and coconut bliss. Enjoy every step of making it, and especially enjoy sharing (and eating!) it!


Coconut Dream Cake
Equipment
- Electric Mixer
- Three 8-inch Cake Pans
- Wire Rack
- Mixing Bowls
Ingredients
Coconut Cake
- 3 cups all-purpose flour
- 1 tbsp Clabber Girl® Baking Powder
- 1/2 tsp salt
- 1 3/4 cups granulated sugar
- 3 large eggs
- 3/4 cup Crisco® All-Vegetable Oil
- 1 tsp coconut extract
- 1 3/4 cups whole milk
- 1 cup shredded coconut
Coconut Sour Cream Filling
- 8 oz sour cream
- 2 cups granulated sugar
- 12 oz shredded coconut
- 1 tsp coconut extract
Coconut Buttercream
- 1 cup butter
- 1/2 cup Crisco® All-Vegetable Shortening
- 1 tsp coconut extract
- 5 cups powdered sugar
- 2 tbsp heavy cream or milk
- 2 cups shredded coconut
Instructions
- Preheat oven to 350°F and grease and flour three 8-inch round cake pans.
- In a large bowl, whisk together flour, baking powder, salt, and sugar. Add eggs, oil, coconut extract, and milk. Mix on medium speed until combined. Stir in shredded coconut.
- Divide batter equally among the prepared pans. Bake for 23–25 minutes until golden and a toothpick comes out clean. Cool 10 minutes, then on wire rack.
- In a medium bowl, combine all filling ingredients. Stir well and refrigerate until needed.
- Cream butter and shortening. Add coconut extract, half the powdered sugar, and cream. Beat until smooth. Repeat with remaining sugar. Adjust texture as needed.
- Place first cake layer on plate. Pipe frosting border, fill with half of filling. Add second layer, repeat. Top with final layer.
- Frost entire cake with buttercream. Press shredded coconut onto the sides and top.
- Refrigerate a few hours before serving. Loosely cover with plastic wrap if needed.