Preheat oven to 375 degrees. Prepare a half sheet pan (18×13″) with nonstick spray.
In a large bowl or stand mixer, whisk together flour, sugar, baking soda and salt.
On the stovetop, melt butter and coconut milk in a small saucepan to boiling, Remove from heat.
Mix the butter and coconut milk into the dry ingredients.
Next, add eggs and sour cream, coconut extract, and vanilla extract. Blend until lumps are gone.
Pour batter into your prepared baking pan. Place in oven 17-22 minutes or until golden brown and toothpick in center of cake comes out clean.
Coconut Icing
Gather ingredients for the icing.
Place powdered sugar into a large bowl or stand mixer bowl.
Melt butter and coconut milk on stove and heat to boiling. Remove and pour into large bowl with powdered sugar. Add in the coconut extract and mix until well incorporated.
Once cake is done, remove from oven and allow to rest about 5 minutes. Pour frosting over the warm cake and spread evenly.
Top with coconut while cake is still warm. Allow to rest about an hour, then slice and enjoy!