Preheat your oven to 180°C (350°F). Grease the loaf pan with butter and line it with parchment paper for easy removal.
In a mixing bowl, whisk together the flour, baking powder, and salt until well combined. Set aside.
In another large bowl, cream the softened butter and brown sugar together using a whisk or an electric mixer until the mixture is light, fluffy, and fragrant, about 3 minutes.
Add the eggs one at a time, beating well after each addition to incorporate air and create a smooth, thick batter.
Pour in the coconut milk and mix until the batter is smooth and slightly glossy, filling your kitchen with a sweet, coconut aroma.
Gently fold in the toasted shredded coconut, ensuring even distribution without overmixing to keep the batter airy.
Pour the batter into your prepared loaf pan, smoothing the top with a spatula and gently tapping the pan to settle the batter evenly.
Bake in the preheated oven for 50 to 60 minutes, or until the top is golden brown, cracks slightly, and a toothpick inserted into the center comes out clean.
Remove the cake from the oven and let it cool in the pan for about 10 minutes. Then, transfer it to a wire rack to cool completely, allowing the flavors to settle and the crumb to firm up.
Once cooled, slice the cake with a serrated knife, revealing the moist, tender interior speckled with toasted coconut, and enjoy its warm, comforting aroma and texture.