1 c. fresh coconut milk (add regular milk to coconut milk if necessary)
3 eggs, separated
1 1/2 c. sugar
3/4 c. shortening
1/2 tsp. vanilla
1/4 c. grated fresh coconut
2 1/4 c. flour
2 1/4 tsp. baking powder
1/2 tsp. salt

Sift together flour, baking powder, and salt. Set aside. Beat egg whites until stiff peaks form. Beat in 1/2 cup sugar. Gradually beat in 1 cup sugar. Stir in egg yolks and 1/4 cup fresh coconut. Beat well; add dry ingredients alternately with coconut milk. Fold in beaten egg whites. Spoon into 2 greased 9 inch pans. Bake in preheated 375 degrees for 25 minutes.

ICING:

3/4 c. shredded coconut
4 oz. pkg. cream cheese, softened
1 1/2 c. confectioners sugar
1 egg white, slightly beaten
1/2 tsp. vanilla
1/2 tsp. salt

Thoroughly beat together all ingredients except coconut. Spread on top and between layers of cake. Sprinkle with coconut.