Beat butter and cream cheese at medium speed with an electric mixer until fluffy; gradually add 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 coconut milk, beginning and ending with flour mixture. Beat at low speed until blended after each addition. Stir in coconut and coconut extract. Pour half of the batter evenly into 2 greased and floured 9- x 1 3/4- inch round cakepans. Pour remaining half of batter evenly into 2 greased and floured 6- x 1 3/4-inch round cakepans. Bake at 350º for 20 to 25 minutes or until a wooden pick inserted in center comes out clean.
Halve the Nutty Cranberry Filling recipe, and spread between 9-inch layers and 6-inch layers. Place 6-inch stacks on top of 9-inch stacks. Frost with White Chocolate Frosting, and garnish if desired, with sparkling sugar, glitter, and White Chocolate Stars.
Note: For testing purposes only, we used Nestlé Premiere White Morsels for white chocolate morsels and Craisins for sweetened dried cranberries. Sparkling sugar, egible glitter, luster dust, and clear vanilla extract can be found at gourmet grocery stores, cake decorating supply stores, and kitchen shops. Vanilla candy coating is sold near baking chocolate in the supermarket. It is often referred to as almond bark, and it comes in vanilla and chocolate flavors. Canned coconut milk may be found in the ethnic foods section of the supermarket.
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