Preheat oven to 180ºC (356ºF). Line a round 8-inch baking tin with parchment paper and set aside. NOTE: Alternatively, if you have a non-stick tin, liberally grease it with spreadable butter and dust it with a light layer of flour. This will leave your finished cake with smooth sides.
In a medium size mixing bowl, add flour, baking powder and salt. Whisk until well combined. Set aside.
Prepare either a stand mixer with the paddle attached or a large mixing bowl with an electric hand beater.
Add softened butter to the large mixing bowl and beat on low speed until it breaks up and turns creamy about 15-20 seconds.
Add sugar and beat with the butter for 2 minutes until pale and creamy. Scraping down the sides as needed.
Add eggs one at a time, beating for 15 seconds after each addition. Scrape down the sides.
Pour in milk, oil and vanilla. Beat for 15 seconds until well combined.
Add the larger quantity (3/4 cup) of toasted coconut and beat on low speed until just combined.
Add half of the flour mixture and beat until just combined. Scrape down the sides.
Add remaining flour and beat until incorporated, ensuring not to over-beat, just until the flour has combined then turn off the beater. If some excess flour is still visible around the sides of the bowl, gently fold it in with a spatula. If you over-beat, the cake can turn tough and dense after baking.
Pour into lined tin and smooth out the top with a rubber spatula.
Bake for 30-35 minutes until a skewer inserted into the middle comes out clean and it’s golden all over.
Remove from oven and allow to cool in tin for 10 minutes.
Carefully remove from tin and transfer to a wire rack to cool completely.