Preheat your oven to 350°F (175°C) and prepare your cake pans.
In a large mixing bowl, cream the softened butter and sugar together until light and fluffy.
Add the eggs one at a time, mixing well after each addition.
Mix in the crushed pineapple and coconut milk, stirring until just combined.
In another bowl, whisk together the flour, baking powder, and salt.
Gradually add the dry ingredients to the wet ingredients, mixing until just blended.
Fold in the shredded coconut and vanilla extract.
Divide the batter evenly between the prepared cake pans and smooth the tops with a spatula.
Bake in the preheated oven for 25-30 minutes, or until a toothpick inserted in the center comes out clean.
Let the cakes cool in the pans for 10 minutes before transferring them to a wire rack.
Once cooled, frost with your favorite icing or serve plain with a dusting of powdered sugar.