Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
In a large bowl, whisk together flour, sugar, baking powder, baking soda, and salt.
In a separate bowl, cream together butter and sugar until light and fluffy. Beat in eggs one at a time, then stir in vanilla.
Gradually add the dry ingredients to the wet ingredients, alternating with the milk, beginning and ending with the dry ingredients. Mix until just combined.
Stir in the coconut.
Divide batter evenly between the prepared pans.
Bake for 30-35 minutes, or until a wooden skewer inserted into the center comes out clean.
Let cakes cool in pans for 10 minutes before inverting onto a wire rack to cool completely.
Notes
This cake is best served the day it is made, but can be stored in an airtight container at room temperature for up to 3 days.