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Home » Recipe Index » Cakes
5 from 13 votes

Coconut Loaf Cake with Caramel Sauce

Modified: Jul 9, 2025 · Published: Feb 1, 2022 by Sarah Mir

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A rich coconut cake drizzled with the most scrumptious caramel sauce

stack of coconut loaf cake slices with caramel drizzling over top

When is your oldest cookbook from? Mine is from my teens and it is a compilation of my favorite recipes written in my awkward cursive. It contains many favourites including my beloved Orange Cake, the Lemon Velvet I so adore, and a Coconut Cake. This Coconut Loaf Cake is not that Coconut Cake although I desperately wanted it to be.

Coconut is a difficult flavour to impart in a cake because of it's delicate sweetness and my original recipe with it's sole addition of desiccated coconut although tasty no longer hit the mark.

I had to recalibrate a little and started with this lovely loaf from the NY TIMES only to find it was too crumbly on the first try, wouldn't rise enough with the suggested addition of sour cream on the second, etc.

Good thing I am persistent huh.

Coconut Loaf Cake, side view, ¾

This Coconut Loaf Cake is what I wanted it to be - it's got a firm soft texture like the most tender pound cake, the subtle coconuttiness of it perfumed throughout. That extra caramel on top - I mean, do I even need to explain the magic it adds?

Caramel sauce being drizzled on a coconut cake

Coconut Loaf Questions

Isn't it too much to use three types of coconut flavoring?

Nope. The coconut oil, milk, and shredded coconut are all mild in nature and just play into a harmony of flavour.

Should I use coconut flavoring?

Short answer: up to you. I am personally not a fan of it so I skip it here, but if you like it and have it handy it would definitely increase the coconut flavour!

How should I store the cake?

Outside at room temperature. Stay away from the fridge folks. Coconut oil will often harden at room temperature and it plays a big role in this cake. Put it in the fridge and we got problems. Of course if you have then simply warm before serving. If you toast it and butter it lightly it's so incredibly good!

Can I use Unsweetened Coconut?

Absolutely, but it will naturally make the cake a little less sweet. You can add 2 tbsp extra of sugar into it or if you prefer less sweet cakes then leave it as is.

Do I need to toast the coconut for my Coconut Loaf Cake?

You don't have to, but toasted coconut is far more delicious than it's paler counterpart.two pieces of coconut loaf cake, a jar of caramel sauce and a bowl of toasted coconut

What is the best way to toast coconut?

The best way is to spread it out on a baking sheet and bake at 350F for 5-7 minutes. Check on it frequently after the four minute mark because coconut burns quickly.

The easiest way to toast coconut is stove top. I take a clean pan and put on medium heat and add my coconut. Once the colour starts to change then move it around frequently to avoid burning. Your coconut won't be as evenly golden as it would be in the oven, but I like the convenience of this approach.

What do I do with the other half of the coconut milk can?

When I asked my Instagram family if using half a can would bother them the overwhelming majority said not at all and that if anything they would just make two cakes! If you aren't in camp two cakes then Coconut Milk is fantastic in smoothies and can also be frozen for a month no problem to be added into your favorite curries later. Or Cake.

Sharing the recipe below, do let me know if you try it and rate it below! Tag me in your recreations on Instagram too @flourandspiceblog - Happy Baking!

a coconut cake loaf with shredded coconut and caramel sauce drizzle
Print Recipe
5 from 13 votes

Coconut Loaf Cake with Caramel Sauce

A moist coconut pound cake taken over the top with a delicious caramel sauce!
Prep Time15 minutes mins
Cook Time50 minutes mins
Total Time1 hour hr 5 minutes mins
Course: Dessert
Cuisine: American, Canadian
Servings: 10
Calories: 473kcal
Author: Sarah Mir

Equipment

  • 1 9*5 Loaf Pan

Ingredients

Coconut Loaf Cake

  • 6 tbsp room temperature butter
  • 6 tbsp liquid/melted coconut oil
  • 1 cup granulated sugar (use caster if your granulated sugar is coarse)
  • 3 eggs
  • 1 tsp vanilla extract
  • 2 cups all purpose flour
  • 2 tsp baking powder
  • ½ tsp baking soda
  • ½ tsp salt
  • 1 cup coconut milk see notes
  • 3 tbsp milk or buttermilk
  • 1 cup toasted sweetened shredded coconut

Caramel Sauce

  • ¼ cup brown sugar
  • 2 tbsp butter
  • ¼ cup cream
  • ½ tsp vanilla extract
  • ⅛ tsp salt

Additional toasted coconut for sprinkling over top - ¼ cup

Instructions

  • Preheat your oven to 350F and grease your loaf pan, lightly dusting with flour.
  • Beat the butter and sugar together while gradually adding in the coconut oil, continue beating for 2 minutes for a fluffy slightly airy mix.
  • Add in the eggs one by one, mixing for a minute after each addition - the batter will start looking even fluffier.
  • Mix in your vanilla extract
  • With your mixer on low add in half the flour, then half the milk(s), then the remaining half of the flour and the remaining half of milk. Mix until just combined, you are not trying to get a smooth batter, small lumps are fine.
  • Gently fold in your coconut and transfer the mix to your prepped pan.
  • Bake for 50-55 minutes or until a skewer inserted in the center comes out clean.

Caramel Sauce

  • combine the sauce ingredients, bring to a simmer, cook for three minutes and let cool for ten before pouring over the cake. Bonus points if you poke holes in the cake with a skewer and let that caramel sauce go in - YUM
  • Sprinkle with toasted coconut and serve

Notes

  • often the cream in the coconut milk can rises to the top, make sure you give it a good stir (warm if needed) before measuring out your one cup or half a can.
Calories: 473kcal | Carbohydrates: 50g | Protein: 5g | Fat: 29g | Saturated Fat: 22g | Polyunsaturated Fat: 1g | Monounsaturated Fat: 4g | Trans Fat: 0.4g | Cholesterol: 80mg | Sodium: 411mg | Potassium: 148mg | Fiber: 1g | Sugar: 30g | Vitamin A: 446IU | Vitamin C: 0.3mg | Calcium: 80mg | Iron: 2mg
Tried this Recipe? Tag me Today!Mention @flourandspiceblog or tag #flourandspiceblog!

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Comments

    5 from 13 votes (10 ratings without comment)

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    Recipe Rating




  1. Sidra says

    October 02, 2025 at 7:36 pm

    Can I skip coconut milk? Not a fan of the taste 😭

    Reply
    • Sarah Mir says

      October 07, 2025 at 12:51 pm

      Hi Sidra! Then you absolutely can, but it will be less coconutty!

      Reply
  2. Eladaisa Gifford says

    May 13, 2024 at 8:30 pm

    Hi! Can I add some pineapple to this recipe too?

    Reply
    • Sarah Mir says

      May 14, 2024 at 12:42 pm

      Hey there! Although I love pineapple and coconut together, I have to got to say that because the cake batter is already pretty dense it may not work here! Do keep me posted if you try it!

      Reply
  3. Sania Yousuf says

    March 25, 2024 at 8:16 am

    This cake turned out absolutely delicious. Baked it for a small family iftar and most of it was gone by the end. It tasted even better the next day!! 🤩

    Reply
    • Sarah Mir says

      April 02, 2024 at 11:26 am

      Thank you Sania! You've inspired me to make it for my upcoming family iftar! 🙂

      Reply
  4. Sehrish Khan says

    April 30, 2023 at 1:33 pm

    I made this cake with a few changes, used half the amount of shredded coconut, didn't roast it and didn't make glaze.🤷‍♀️ Still it tasted amazing and my husband loved it Alhamdulillah ❤ Thank you once again for the wonderful recipe. I have my eyes on other cakes already on your website. 👀🤤

    Reply
    • Sarah Mir says

      May 01, 2023 at 10:59 am

      Thank you for your review Sehrish! Love hearing about how you personalized it!

      Reply
  5. Saira says

    February 03, 2022 at 1:01 pm

    I had so much fun making this cake. I couldn’t resist! The flavor and texture of this cake is like no other. I think the coconut milk adds so much creamy flavor to the whole thing. It’s a key ingredient. This will be a regular cake at my place from now on. Planning to serve it with homemade custard.

    Thank you Sarah! You truly outdid yourself with this beauty. Muy bueno! ❤️

    Reply
    • Sarah Mir says

      February 03, 2022 at 3:54 pm

      Thank you thank you for trying it out and it makes me so happy to hear that you enjoyed it!!!!

      Reply
  6. Ayesha says

    February 03, 2022 at 10:37 am

    The best loaf I ate! Thank you so much Sarah! The recipe was perfect..

    Reply
    • Sarah Mir says

      February 03, 2022 at 3:52 pm

      Thank you for sharing your review and I am SO glad you liked it!

      Reply

Hi, I'm Sarah! Welcome to Flour & Spice, the foodie world of a Pakistani origin Canadian mama of two whose busy life and love for food means practicality reigns supreme! I love baking (duh!), my readers (extra duh!), reading, coffee, singing loudly slightly off key, and aprons.

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