Preheat your oven to 325°F (160°C). Grease and flour a 10-12 cup Bundt pan thoroughly, making sure to get into all crevices. Alternatively, you can use baking spray with flour.

In a medium bowl, whisk together the sifted all-purpose flour, baking powder, and salt. Set aside.

In the bowl of a stand mixer fitted with the paddle attachment (or using a hand mixer), cream together the softened butter and cream cheese on medium speed until light and fluffy, about 3-5 minutes. Scrape down the sides of the bowl as needed.

Gradually add the granulated sugar to the butter and cream cheese mixture, beating on medium-high speed for another 5-7 minutes, until the mixture is very pale and fluffy.

Add the eggs one at a time, beating well after each addition until fully incorporated. Scrape down the bowl.

Stir in the vanilla extract and coconut extract (if using) until just combined.

With the mixer on low speed, alternately add the dry ingredients mixture and the coconut milk to the wet ingredients, beginning and ending with the dry ingredients. Start with about one-third of the dry ingredients, mix until just combined, then add half of the coconut milk, mix, then another third of dry, remaining coconut milk, and finally the last third of dry ingredients.

Mix until just combined and no streaks of flour remain. Do not overmix. If using, gently fold in the shredded sweetened coconut with a spatula.

Pour the batter evenly into the prepared Bundt pan. Tap the pan gently on the counter a few times to release any air bubbles.

Bake for 70-85 minutes, or until a wooden skewer or toothpick inserted into the center of the cake comes out clean. The exact baking time will vary depending on your oven and pan type.

Once baked, remove the cake from the oven and let it cool in the pan on a wire rack for 15-20 minutes. This allows the cake to set and prevents it from sticking.

Carefully invert the cake onto the wire rack to cool completely. Ensure it is fully cooled before glazing.

While the cake cools, prepare the coconut glaze. In a small bowl, whisk together the sifted powdered sugar, 2 tablespoons of coconut milk, and coconut extract (if using) until smooth. If the glaze is too thick, add more coconut milk, a teaspoon at a time, until it reaches a pourable consistency.

Once the cake is completely cool, slowly pour or drizzle the glaze over the top, allowing it to drip down the sides. Let the glaze set before slicing and serving.