Preheat the oven to 350ºF.
In a small mixing bowl, combine flour, baking powder, and salt and set aside.
1½ cups all-purpose flour, 1½ teaspoons baking powder, ½ teaspoon salt
In a larger mixing bowl, cream the butter and sugar together until light and fluffy.
½ cup salted butter, ⅔ cup granulated sugar
Beat in eggs, coconut extract, and coconut milk.
3 large eggs, 1 teaspoon coconut extract, ½ cup full-fat coconut milk
Stir in flour mixture until just combined.
Stir in shredded coconut.
1 cup shredded sweetened coconut
Pour into a greased 9x5 inch loaf pan and bake in the center of the oven for 65 minutes, or until a toothpick inserted into the center comes out clean.
Remove from oven and let rest in pan for 10 minutes.
Loosen edges from pan with a butterknife (or something of that nature), and turn onto a wire rack to finish cooling.
When the loaf is cool, combine powdered sugar, melted butter, and coconut milk, and spread it over the loaf. Sprinkle with additional shredded coconut as desired. Slice and serve.
1 cup powdered sugar, 2 tablespoons full-fat coconut milk, 1 tablespoon salted butter, Additional shredded sweetened coconut