Cream butter well to incorporate air, gradually adding sugar.
Beat in egg yolks one at a time, beating well after each addition.
Sift together flour, baking powder, salt. Add dry ingredients to creamed butter mixture alternately with 1/2 cup water. Beat well. Add extract.
In a very clean bowl (one trick is to rub the bowl with vinegar), beat egg whites until stiff but not dry. Fold gently into batter.
Turn mixture into 2 greased layer cake pans.
Bake in preheated 350°F oven for 25 to 30 minutes or until toothpick inserted in center is nearly clean and cake springs back when pressed lightly in center.
When cake is cooled, frost with a boiled frosting, seven-minute frosting, or all-white Mountain or coconut frosting.
Sprinkle with freshly grated coconut.
Submitted by: Andrew Britkutze
