Preheat oven to 350°F (175°C) and grease a 9x5 inch loaf pan with butter or non-stick spray.
Whisk together flour, baking powder, baking soda, and salt in a medium bowl.
In a separate large bowl, cream the butter and sugar using an electric mixer until the mixture is light and fluffy.
Add the eggs one at a time, beating well after each addition.
Mix in the vanilla extract and coconut extract.
Gradually add the dry ingredients to the wet ingredients, alternating with the coconut milk, beginning and ending with the dry ingredients.
Gently fold in the shredded coconut using a spatula.
Transfer the batter into the prepared loaf pan and smooth the surface.
Bake for 50 to 60 minutes, or until a wooden skewer inserted into the center comes out clean.
Allow the cake to cool in the pan for 10 minutes before removing to a wire rack to cool completely.