Measure sifted flour, baking powder, and salt, sift together.
Cream butter. Gradually add sugar; cream until light and fluffy.
Add eggs, one at a time, beating well after each addition.
Alternately add flour mixture and milk, beating after each addition until smooth.
Stir in vanilla and coconut.
Pour batter into two 8 inch layer pans, lined on bottom with wax paper.
Bake in moderate oven (350) 30 to 35 minutes.
Cool in pans 10 minutes then remove from pans and finish cooling on racks.