Frosting:

8 oz. cream cheese, softened at room temperature
1/4 c. butter, softened at room temperature
1 box (16 oz.) confectioners' sugar
Remaining toasted coconut

Cream together the cream cheese and butter. Gradually add the confectioners' sugar, beating well. If the frosting seems too thick, simply add a little milk and continue beating until smooth. Stir in the toasted coconut. Spread between layers, on top of cake and around the sides.

Note: If desired, toast an additional cup of coconut and press onto sides of frosted cake.

Layers:

2 c. all-purpose flour
1 tsp. baking soda
1/4 tsp. salt
1 c. buttermilk

Preheat the oven to 350°F. Grease and lightly flour three 9-inch cake pans. Spread the coconut on a baking sheet and toast in the oven for 3 to 4 minutes, stirring about every 30 seconds, until the coconut begins to brown slightly. Remove immediately from the pan to prevent further browning. Beat the egg whites until stiff peaks form. Set aside. In another bowl, cream together the butter, sugar, and extracts. Add the egg yolks, one at a time, beating well after each addition. Combine the flour, baking soda, and salt and stir to mix. Add to the creamed mixture alternately with the buttermilk. Fold in the beaten egg whites and 1 cup of the toasted coconut. Spoon the batter into the prepared pans.

Bake for about 25 minutes or until a toothpick comes out clean when inserted into center of one of the layers. Remove the layers from the pans immediately and cool completely on rack.