Preheat the oven to 350°F. Line a 9x13-inch baking pan with parchment paper.
In a large mixing bowl add the cake flour, cane sugar, baking powder, and fine sea salt and whisk together to combine the dry ingredients.
Add the applesauce, melted coconut oil, heavy whipping cream, and coconut milk and mix on low to medium speed until combined into a smooth batter.
Transfer to the prepared baking pan and spread it out evenly.
Bake for 40 to 45 minutes, or until a toothpick inserted in the center comes out clean. Allow to cool completely in the pan.
Once the cake is done baking, don't turn the oven off. Line a baking sheet with parchment paper and add the fine shredded coconut and spread out in an even layer.
Bake for 3 to 5 minutes or until lightly toasted.
To make the frosting: In the bowl of a stand mixer fitted with the paddle attachment, add the butter, powdered sugar, coconut milk, and coconut extract. Mix on low until combined, then speed mixer up to high for 2 to 4 minutes or until light and fluffy. Make sure to scrape down the sides of the bowl part way through mixing to ensure everything is mixed properly.
Transfer the frosting to the cake and spread evenly over the top. Sprinkle toasted coconut on top of the cake.