Step 1: Prepare the Cake
Preheat oven to 350°F (175°C). Grease and flour two 9-inch round cake pans.
In a bowl, whisk together flour, baking powder, and salt. Set aside.
In a large bowl, beat butter and sugar until light and fluffy.
Add eggs one at a time, mixing well after each addition.
Stir in vanilla and rum extract.
Alternately add dry ingredients and coconut milk + pineapple juice, mixing just until combined.
Fold in crushed pineapple.
Divide batter evenly between pans and bake for 28-30 minutes, or until a toothpick comes out clean.
Let cakes cool completely before frosting.
Step 2: Make the Frosting
Beat butter until smooth. Gradually add powdered sugar, mixing until fluffy.
Add coconut milk, vanilla, and rum extract. Beat until creamy.
Fold in shredded coconut.
Step 3: Assemble And Decorate
Place one cake layer on a serving plate and spread with frosting.
Add second cake layer and frost the top and sides.
Sprinkle toasted coconut flakes over the top.
Garnish with pineapple slices and maraschino cherries.