Beat butter at medium speed with an electric mixer until fluffy, gradually add 1 2/3 cups sugar, beating well. Add eggs, 1 at a time, beating until blended after each addition.
Combine flour, baking powder, and salt; add to butter mixture alternately with milk, beating at low speed until blended, beginning and ending with flour mixture. Stir in vanilla. Pour batter into 3 greased and floured 8-inch round cake pans.
Bake at 350° for 18 to 20 minutes or until a wooden pick inserted in center comes out clean. Cool in pans on wire racks about 10 minutes; remove from pans, and cool completely on wire racks.
Stir together orange juice and 2 teaspoons sugar. Microwave at HIGH 1 minute or until sugar is dissolved. Drizzle evenly over tops of cake layers.
Spread 1/2 cup Satin Icing between layers. Spread remaining Satin Icing on top and sides of cake. Lightly press coconut between layers of paper towels to remove excess moisture. Sprinkle coconut on top and sides of cake; press slightly.