Preheat oven to 350 degrees F. Line an 8 inch square metal pan with foil and spray with baking spray or rub with butter.
Mix the flour, sugar, baking powder and salt; set aside.
In a mixing bowl, using a handheld electric mixer, beat the butter until creamy and soft. Add the flour mixture and stir until it is coated with butter. With a spoon, stir in the egg until it is fully blended, then gradually add the coconut milk, stirring until is just blended. With the electric mixer, beat for one minute.
Stir in ⅔ cup of the coconut. Pour into the pan and bake on center rack for about 30 minutes (if you have to use glass, remember to bake at 325 and add an extra 10 minutes or so) or until a toothpick inserted in the center comes out clean.
Let the cake cool completely. Turn from pan, peel away foil and split the cake through the center to make two layers. Put preserves between the two layers.
In a chilled metal mixing bowl, beat the cream until soft peaks begin to form. Add the sugar and vanilla and beat just until peaks are stiff. Spread over the cake. Sprinkle coconut all over the cake or sprinkle just a little bit on top. Garnish with more preserves if you want to.
**I used White Lily flour and needed 1 ⅓ since it’s slightly lighter cup for cup