Preheat the oven to 350 degrees. Grease and flour two, 8-inch layer cake pans.
Cream the butter and sugar together until light; add the eggs and beat well. Add the milk and coconut alternately with the sifted dry ingredients. Beat well.
Turn the batter into the prepared pans and bake about 25 to 35 minutes, or until a cake tester comes out clean when inserted in the middle of the cake. Cool in the pans for 10 minutes then turn out onto wire rack to cool completely. Frost with 7-Minute or White Mountain frosting and sprinkle coconut over the frosted cake. Serves 8 to 10.
Source: Favorite Recipes from Progressive Farmer, 1967