Preheat your oven to 350°F (175°C). Grease and flour a 10-inch bundt pan or two 9x5-inch loaf pans.

In a large mixing bowl, beat the softened butter and sugar together with an electric mixer on medium speed until light and fluffy, about 5 minutes.

Add the eggs, one at a time, mixing well after each addition. Stir in the vanilla and coconut extracts until well combined.

In another bowl, whisk together the flour, baking powder, baking soda, and salt until evenly mixed.

Gradually add the dry ingredients into the wet mixture, alternating with the coconut milk. Begin and end with the flour mixture, mixing until just combined. Fold in the shredded coconut carefully.

Pour the batter into the prepared pan, smoothing the top evenly.

Bake in the preheated oven for 60-70 minutes, or until a toothpick inserted into the center comes out clean.

Remove from the oven and let it cool in the pan for about 15 minutes before transferring it to a wire rack to cool completely.