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Preheat oven to 175ºC/350ºF degrees.
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Spray with cooking spray or grease well and flour an 8-inch Bundt pan.
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In a food processor, pulse 1/2 cup of coconut, flour, baking powder, and salt until well mixed.
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In a mixer, beat butter until creamy and gradually add sugar until light and fluffy.
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Add eggs, egg whites, and vanilla and continue beating until well mixed.
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Add flour mixture alternating with the coconut milk, starting and ending with the flour mix and beating well after each addition.
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Pour batter into prepared pan and bake for about 35/40 minutes until a cake skewer inserted into middle of cake ring comes out clean. It tends to be less cooked near the centre of the bundt pan so test there. Transfer to a wire rack and allow to cool in the pan for at least 30 minutes.
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Invert the cake onto rack to cool completely. Trim top of cake if the cake is not level.
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Beat icing sugar and milk until smooth. Add pink food colouring .
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In a separate bowl, toss remaining cup of coconut with small amount of pink edible dust.
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Drizzle icing over top of cake and sprinkle with pink coconut.