Preheat oven to 170°C (340°F). Grease and line a 6–7 inch loaf tin with parchment paper.
In a small bowl, whisk together the eggs and vanilla extract until just combined. Set aside.
In a large mixing bowl, use a rubber spatula to roughly combine the soft butter and caster sugar. Then beat with a hand mixer on medium-high for 2–3 minutes until pale, light, and fluffy.
With the mixer on medium speed, add the egg mixture in 2–3 small gradual additions, fully incorporating each addition before adding the next.
Switch off the hand mixer. Sift the cake flour and baking powder directly into the butter mixture. Fold gently with a spatula until just combined — do not overmix.
Add milk gradually (start with 20ml) and fold until the batter is soft and scoopable — not runny, not stiff.
Add the desiccated coconut and fold through until evenly distributed.
Spoon batter into the prepared tin. Smooth the top and sprinkle generously with extra desiccated coconut.
Bake for 30–35 minutes, until golden brown, pulling away from the edges, and a skewer inserted in the centre comes out clean.
Cool in the tin on a wire rack for 10–15 minutes. Turn out and cool completely before slicing.