Start by toasting the coconut. Preheat your oven to 325 degrees F and spread the 2 cups of shredded coconut onto a baking sheet. Bake in the oven for 5 to 10 minutes or until golden brown. Then set aside to cool.
Turn the oven to 350 degrees F then spray your loaf pan with non-stick spray. In a medium bowl, add in flour, baking powder, and salt. Mix well and set aside. In a large bowl, cream softened butter and sugar together. Then add in vanilla and eggs. Mix well. Add flour mixture and buttermilk alternatively. Be sure to scrape the sides and mix well. Then fold in one cup of the toasted coconut into the batter.
Then pour the batter into a prepared loaf pan.
Bake for 55-60 minutes, until a toothpick comes out clean. Remove from oven then cool for 10 minutes. Remove from pan and then transfer to a cooling rack to cool completely.
To prepare the glaze, mix the powdered sugar, milk, and coconut extract well. Then spoon over your cake. Top with the remaining toasted coconut.