Name: Coconut Custard Cake
Prep time: 1 h
Cook time: 30 min
Total time: 1 h 30 min
Cuisine: American
Ingredients: 1 ½ cups (285g) granulated sugar; ½ cup (118 ml) vegetable oil; 2 tablespoon (28g) unsalted butter, melted; 2 large egg; 2 large egg white; ½ cup (118 ml) sour cream; 2 ½ cups (350g) all-purpose flour; 2 teaspoon (7.5g) baking powder; 1 teaspoon (4.5g) baking soda; 1 teaspoon (5g) salt; 1 tablespoon (15ml) coconut extract; 1 teaspoon (5ml) pure vanilla extract; 1 1/3 cup (315ml) coconut milk, well stirred; 1 ¼ cup (296ml) heavy whipping cream, divided; 4 teaspoons (13g) cornstarch; 1/2 cup (114g) unsalted butter; ¾ cup (142g) granulated sugar; 2 ¼ cups (170g) shredded coconut, sweetened; ¼ teaspoon vanilla extract; 1/2 cup (114g) unsalted butter, softened; 12 oz (339g) cream cheese, softened; 1 teaspoon (5ml) vanilla extract; 3 cups (390g) powdered sugar; 2 cups (151g) shredded sweetened coconut, toasted

Moist and decadent Coconut Custard Cake is made from fluffy coconut cake layered with a rich and creamy custard, coated in tangy cream cheese frosting, and golden toasted coconut.

If you love creamy coconut desserts, my Coconut Cream Pie, a personal favorite or these Coconut Cupcakes which use the same base coconut cake recipe as this recipe.

A slice of coconut custard cake on a white plate, with the rest of the coconut cake on a cake stand in the background.

Fluffy Coconut Cake with Coconut Custard Filling

Where are my coconut lovers at? Today’s cake recipe is for you! First, we have fluffy layers of moist, spongey homemade coconut cake, filled with decadent creamy coconut custard. Then, the whole thing is finished off with a simple and tangy cream cheese frosting and covered with toasted coconut.

The cake that inspired this recipe is actually from Croissant Bakery in Myrtle Beach, South Carolina. Heidi, the owner, wrote a wonderful cookbook, and the original coconut custard cake was so good, I couldn’t resist making my own variation! This coconut cream cake looks impressive, and it’s more than worth the effort.

Coconut custard cake covered with toasted coconut with a slice missing, on a white cake stand with a wooden base, next to a jar of toasted coconut.

Key Ingredients

The homemade coconut cake layers for this recipe are thick and stable, and perfect for stacking. Below are the key ingredients you’ll need to make this luscious coconut custard-filled cake, with the full recipe details available in the recipe card.

For the Coconut Cake

Oil and Butter – Oil brings more moisture to the cake crumb than butter would alone, while melted unsalted butter adds richness and flavor.
Egg and Egg White – The egg helps bind the ingredients, while the addition of an extra egg white makes the cake’s texture extra fluffy.
Coconut Extract – Despite it being an extract, coconut isn’t a very strong flavor, so I amp up the amount in this recipe.
Sour Cream – Sour cream brings loads of added moisture to cakes, and it’s especially helpful in this recipe since this cake is refrigerated. If you don’t have sour cream, substitute Greek yogurt instead.
Coconut Milk – You’ll find cans of coconut milk in the Asian food section of your local supermarket. Make sure you’re buying coconut milk, and not coconut cream. You’ll notice that the fat separates from the liquid, so make sure to stir it well.

For the Custard Filling

Heavy Cream – Full-fat heavy whipping cream will yield the richest, creamiest coconut custard.
Cornstarch – Thickens the custard without it becoming grainy.
Vanilla Extract – I use pure vanilla extract along with sweetened shredded coconut to flavor the filling.

To Make the Cream Cheese Frosting

Butter and Cream Cheese – I recommend using unsalted butter and the cream cheese (full-fat) that comes in blocks (versus the tub kind). Take both ingredients out of the fridge ahead of time so that they can soften to room temperature.
Toasted Coconut – For decorating. Don’t forget to check out the section layer on with more decorating tips and ideas!

How to Make Coconut Custard Cake

There are a few steps involved in making this cake, but never fear! You can also prepare some of the components ahead of time, which I go into more detail about below.

Make the Cakes

While the oven preheats, grease, and then line three 8” round baking pans. Next, get started on your coconut cakes.

Combine the wet ingredients. In a large bowl, cream together the sugar, butter, oil, and wet ingredients.
Combine the dry ingredients. In a separate bowl, whisk together the dry ingredients. After, add the dry ingredients to the wet ingredients a little at a time, alternating with the coconut milk until just combined.
Divide and bake. Distribute the batter between the prepared baking pans. Bake the cakes at 350ºF for 20-24 minutes. If you have hot spots in your oven, I recommend rotating the pans in the oven halfway through baking for more evenly baked cake layers.
Toast the coconut. For some forward-thinking, it’s worthwhile to toast the coconut you’ll use to decorate your cakes while the oven is hot! Spread shredded coconut out across a lined baking sheet, and pop it into the oven for 5 minutes, until the coconut is lightly toasted and golden. Set the toasted coconut aside to cool while you prepare the filling and frosting.

Coconut cake inside an 8" round cake pan.

Make the Coconut Custard Filling

The filling for this cake is a simple coconut custard. I’ll warn you: you’re going to want to eat it with a spoon! The custard comes together with heavy whipping cream, butter, sugar, and some shredded coconut for texture.

I sometimes like to make the filling ahead of time and refrigerated it overnight, to really let the flavors develop. However, it does tend to thicken in the fridge, so if you do make it ahead, take it out of the fridge again about 30 minutes to an hour before you plan to use it. Here’s how to make it:

Make a slurry. Whisk together cornstarch with heavy whipping cream. You want the mixture to thicken but stay at a liquid consistency to avoid any clumps.
Heat the ingredients. Combine the remaining heavy cream with melted butter, sugar, and shredded coconut in a saucepan. Bring the mixture almost to a boil, stirring along the way.
Combine. Add the cornstarch slurry to the saucepan, and continue to cook and stir until thickened. Lastly, whisk in the vanilla extract.
Cool. Set the custard aside to cool completely. When I take my custard off the stove, the consistency was thick but still a bit liquid. This is fine – the custard continues to thicken to a spreadable consistency as it cools.

Make the Cream Cheese Frosting

I opted to stay as close as possible to Heidi’s original cream cheese frosting recipe. It’s just perfect for covering this cake in a light layer. This is not a traditional cream cheese frosting, it’s much thinner than I would normally make.

Beat the butter and cream cheese. In a large bowl, beat the cream cheese with butter until smooth.
Combine. Add the powdered sugar one cup at a time, and finally, beat in the vanilla extract until the frosting is evenly combined.

Assembling the Coconut Layer Cake

Now, it’s time to assemble this layer cake! This three-tier cake is easy enough to fill and stack and then decorate with a simple crumb coat, topped with toasted coconut.

Prepare the first layer. First, divide the coconut filling in half, and have your bottom cake layer ready on a cake board.
Fill and repeat. Pipe a border of frosting around the outside edge of the cake, then fill it with custard. This frosting “dam” keeps the custard from oozing out of the sides. Afterward, place the second layer gently over top. Repeat with the third and final layer.
Frost the cake. Give the top and sides of the cake a light coating with cream cheese frosting. It doesn’t have to be a thick layer, as we’re going for more of a crumb coat. Finally, pat the shredded toasted coconut from earlier in an even layer over top of the frosting.
Chill. Place the frosted coconut custard cake, covered, into the fridge for at least a half hour before serving.

If you’re new to baking layer cakes, you can check out my helpful step-by-step on How to Make a Layer Cake with more information.

Coconut custard cake covered with toasted coconut on a white cake stand with a wooden base.

Helpful Tips and Tricks

Get a headstart. Both the frosting and the filling can be prepared ahead of time and kept in the refrigerator. The cream cheese frosting is usually still spreadable after sitting in the fridge overnight, though you can soften it up by letting it sit out with the filling before assembling the cake.
When making the custard filling ahead: If the filling still seems too thick to spread once it’s been out of the fridge for a while, pop it in the microwave for just a few seconds at a time. The consistency should be spreadable but not melting.
Make sure to evenly mix the cake batter. Remember to scrape down the sides of the bowl as needed, and give the batter a good stir from bottom to top.
You will have leftovers. This recipe was originally a 4-layer cake that I turned into a 3-layer cake. Be careful to not overfill your layers.
Start with flat, even cake layers before filling. This helps make a stable cake. I like to use bake-even strips as these prevent the cakes from “doming” too much as they bake. You can also use a bread knife to trim off the domes, as needed.

More Ways to Decorate

The original cream cheese frosting for this cake is on the thinner side, ideal for doing a rough crumb coat that I finish off with toasted coconut.

If you’d prefer a thicker frosting for piping and decorating, you may wish to use my recipe for traditional Cream Cheese Frosting instead (and check out my tutorial on How to Decorate with Piping Tips). Here are more easy decorating tips and variations:

Different Frosting – Try classic Vanilla Buttercream or Mascarpone Whipped Cream.
Sprinkles – Top your coconut custard cake with your favorite colored sprinkles, nonpareils, or sanding sugar (in place of or in addition to toasted coconut).
Fruit – Citrusy lime and coconut are a zesty pair. Top your cake with lime wedges or lime zest for a pop of color. Or, make a pineapple coconut cake with a garnish of fresh drained pineapple.

A slice of coconut custard cake on a white plate next to a forkful.

How to Store Coconut Layer Cake

Due to the custard filling and cream cheese frosting, you’ll want to keep your finished coconut custard cake refrigerated. Store the cake in an airtight container (such as a cake carrier) or wrap the entire cake with plastic wrap to keep it from drying out.

Remove the cake from the fridge approximately 20-30 minutes before serving to take the chill off.

Can I Freeze it?

I don’t recommend freezing cakes with custard or cream fillings, as the filling tends to separate once thawed and turns the cake soggy.

If you’d like to prepare the cake layers in advance, however, you can freeze the individual cakes. It’s easy to wrap the cooled cake layers tightly in plastic wrap, and then freeze them for up to 3 months. Thaw the cakes in the fridge, prepare your filling and frosting, and assemble the cake as usual.