Preheat your oven to 350°F (175°C). Grease and flour three 8-inch round cake pans, and line the bottoms with parchment paper for easy removal.

In a medium-sized bowl, sift together the cake flour, baking powder, baking soda, salt, and cocoa powder. Whisk these dry ingredients together for about 30 seconds to ensure they’re evenly combined. Set this bowl aside.

In another bowl, mix the buttermilk, white vinegar, vegetable oil, vanilla extract, and red food coloring. Stir until all the liquids are well blended and set aside.

Using a stand mixer or handheld mixer, beat the softened butter on medium speed until it is smooth and creamy. Gradually add the sugar, continuing to beat for about 3-5 minutes until the mixture is light, fluffy, and pale in color.

Add the eggs one at a time, ensuring each is fully incorporated before adding the next. Mix just until the yellow yolks are no longer visible.

With the mixer on low speed, alternate adding the dry flour mixture and the wet buttermilk mixture, beginning and ending with the dry ingredients (adding the flour mixture in three parts and the buttermilk mixture in two). Mix until just combined, being careful not to overmix.

Divide the batter evenly among the three prepared pans. Bake in the preheated oven for 25-30 minutes or until a toothpick inserted into the center of the cakes comes out clean or with a few moist crumbs. The cake layers should bounce back when lightly pressed in the center. Allow the cakes to cool in their pans for about 10 minutes before turning them out onto wire racks to cool completely.

Cut the softened butter into slices and add them to the bowl of your mixer. Beat on medium speed until the butter is smooth and creamy.

Add the softened cream cheese, cut into chunks, and continue to beat on low to medium speed until the butter and cream cheese are well combined.

Pour in the vanilla and coconut extracts, followed by gradually adding the powdered sugar. Mix on low speed until the sugar is fully incorporated, then slightly increase the speed and beat until the frosting is fluffy and well blended. Be mindful not to overmix, as this can cause the frosting to become too soft. If it’s too loose, refrigerate briefly to firm it up before using.

Place the first layer of completely cooled red velvet cake onto your serving plate or cake stand. Spread a generous layer of coconut cream cheese frosting over the top, followed by a sprinkling of sweetened shredded coconut.

Repeat the process with the second cake layer, topping with frosting and a sprinkle of coconut. Place the final layer on top.

Apply a thin layer of frosting around the sides and top of the cake, filling in any gaps between the layers. Frost the entire cake with a final, smooth layer of frosting.

Press the sweetened shredded coconut into the frosting on the sides and top of the cake until fully covered.

Store the finished cake in an airtight container or under a cake dome in the refrigerator. For the best taste and texture, allow the cake to sit at room temperature for 2-3 hours before serving, letting it soften and reach optimal flavor.