Step 1: Preheat your oven to 325°F (160°C). Grease and flour a 10-12 cup Bundt pan or a 10-inch tube pan thoroughly.
Step 2: In a large mixing bowl, cream together the softened butter, and cream cheese (if using) with the granulated sugar using an electric mixer on medium-high speed. Beat until the mixture is light and fluffy, about 5-7 minutes. Scrape down the sides of the bowl as needed.
Step 3: Add the eggs one at a time, beating well after each addition. Mix in the vanilla extract and coconut extract (if using) with the last egg.
Step 4: In a separate medium bowl, whisk together the sifted cake flour, baking powder, and salt.
Step 5: With the mixer on low speed, gradually add the dry ingredients to the wet ingredients, alternating with the coconut milk. Begin and end with the dry ingredients (e.g., 1/3 dry, 1/2 wet, 1/3 dry, 1/2 wet, 1/3 dry). Mix just until combined; do not overmix.
Step 6: Gently fold in the sweetened shredded coconut using a spatula until evenly distributed.
Step 7: Pour the batter evenly into your prepared Bundt or tube pan. Smooth the top with a spatula.
Step 8: Bake for 1 hour 15 minutes to 1 hour 40 minutes, or until a wooden skewer or toothpick inserted into the center comes out clean. The top should be golden brown and spring back when lightly touched.
Step 9: Let the cake cool in the pan on a wire rack for 15-20 minutes. Then, carefully invert the cake onto the wire rack and let it cool completely before glazing or serving.
Step 10: Optional Coconut Glaze: In a small bowl, whisk together 1.5 cups powdered sugar, 2 tablespoons melted unsalted butter, and 3-4 tablespoons full-fat coconut milk (or heavy cream) until smooth. Add a touch of coconut extract if desired. Drizzle over the cooled cake and garnish with additional toasted coconut flakes, if desired.