Preheat your oven to 350°F (175°C). Cream together the unsalted butter and sugar until light and fluffy, about 3-4 minutes. Gradually add the room temperature eggs and vanilla extract, mixing well after each addition.

In a separate bowl, whisk together the flour, baking powder, and salt. Gradually incorporate these dry ingredients into the creamed mixture, alternating with warm water, mixing until just combined.

Grease two round cake pans and divide the batter evenly, smoothing the tops. Bake for 25-30 minutes, or until a toothpick inserted comes out clean. Cool in the pans for 10 minutes before transferring to wire racks.

In a medium saucepan, whisk together heavy cream, corn starch, and sugar over medium heat, stirring constantly until thickened, about 5-7 minutes. Mix in the vanilla and coconut extracts until smooth.

Once cakes are cooled, level if necessary. Place one layer on a platter and spread custard on top. Add the second layer and repeat. Chill in the fridge for at least 4 hours.

Before serving, prepare whipped cream frosting on top, sprinkle with toasted coconut flakes, dust with confectioners' sugar, and serve chilled.