Rich and moist Banana Coconut Cake with Cream Cheese Frosting, perfectly satisfying for mid-morning snack or delicious tea time treat.
Combine milk and coconut in a bowl. Let it stand at room temperature for 30 minutes. In a medium sized bowl, combine all-purpose flour, baking powder, and baking soda. Stir to get ingredients well mixed. Peel and mash bananas in another bowl. Grease and flour an 8-inch x 8-inch square cake pan.
Preheat oven to 350˚F (180°C).
Cream butter and sugar until light and fluffy, about 2 minutes. Beat in egg. Add vanilla extract.
Beat together cream cheese, butter, and vanilla extract with wire whisk until light and fluffy, about 2 minutes. Gradually beat in powdered sugar until smooth and creamy, another 2 more minutes.
When cake is completely cool, spread frosting all over the cake.