Preheat oven 350 F. Grease 2 9-inch cake pans.
Stir the grated coconut into the coconut milk. Set aside to soak.
Separate egg whites TO yolks. Place the egg whites in a small to medium sized mixing bowl. Place the yolks in a large mixing bowl.
Beat the egg whites with an electric mixer until stiff (like whipped cream). Put aside.
For the yolks, add sugar, salt and melted butter or coconut oil. Beat until smooth (1 minute).
Stir the baking powder into the flour, then add this to the yolk mixture. Also, add the coconut milk with the grated coconut. Beat 1-2 minutes or until well combined.
Fold beaten egg whites to batter, OR usng your electric mixer on low speed; beat only enough to combine (20 seconds). Pour the batter to the prepared pans and baking for 30-40 min. Cool before frosting.
Enjoy !