Preheat your oven to 180°C (350°F) and grease a 9x5 inch loaf pan, then line it with parchment paper for easy removal.
In a large bowl, whisk together the flour, baking powder, and salt until evenly combined. This creates a dry base for the batter.
In another bowl, cream the softened butter and sugar using a whisk or electric mixer until the mixture is light, fluffy, and slightly pale, about 3-4 minutes, releasing a sweet aroma.
Add eggs one at a time to the creamed mixture, beating well after each addition until fully incorporated, making the batter smooth and glossy.
Stir in the coconut milk and vanilla extract until the batter is uniform, glossy, and slightly thickened, filling your kitchen with a fragrant coconut aroma.
Gently fold in the shredded coconut using a spatula, ensuring it’s evenly distributed without deflating the batter’s airy structure.
Gradually add the dry ingredients to the wet mixture, folding gently until just combined; avoid overmixing to keep the loaf tender.
Pour the batter into the prepared loaf pan, smoothing the top with a spatula for an even surface, and tap the pan gently on the counter to release air bubbles.
Bake in the preheated oven for 50-55 minutes, until the top turns golden brown and a toothpick inserted into the center comes out clean.
Remove the loaf from the oven and let it cool in the pan for about 15 minutes, then transfer to a wire rack to cool completely, allowing the flavors to deepen.
Slice the cooled loaf with a serrated knife, revealing a golden crust, chewy coconut bits, and a tender crumb. Serve warm or at room temperature to enjoy the nostalgic aroma and texture.
