1 c. shortening
2 c. sugar
1 tsp. vanilla
3 c. sifted flour
3 tsp. baking powder
1 tsp. salt
1/2 c. milk
1/2 c. coconut milk
1 c. grated fresh coconut
6 egg whites, beaten stiff

Cream shortening and sugar until fluffy; stir in vanilla. Combine flour, baking powder and salt; add creamed mixture alternately with milk and coconut milk. Stir in coconut; fold in egg whites. Turn into 2 greased paper-lined layer pans. Bake at 365 degrees for 25 minutes. Cool in pans for 10 minutes. Turn out onto wire rack.

COCONUT ICING:

Sugar
1/4 c. coconut milk
1/4 tsp. salt
1/2 tsp. cream of tartar
2 egg whites
1 tsp. vanilla
2 c. grated fresh coconut

Add 1 teaspoon sugar to coconut milk; spoon over cake layers. Combine 1 cup sugar, salt, cream of tartar, egg whites, 3 tablespoons water and vanilla in top of double boiler. Cook for 7 minutes, beating constantly at high speed. Stir in 1 1/2 cups coconut. Frost between layers and over cake; sprinkle cake with remaining coconut.