Preheat the oven to 175 degrees C.
Now grease a 10 by 2 inch round cake pan and line bottom with a round of wax paper or parchment.
Grease paper and dust pan with flour.
Combine flour, baking powder and salt, mix well.
Beat butter with mixer till creamy.
Gradually beat in sugar on medium speed till pale and smooth.
Add vanilla essence to it, keep stirring.
Beat in eggs, 1 at a time, mixture may look curdled at this time.
Alternately beat in flour mixture and milk in 3 batches over low speed..
Raise the speed to medium and beat batter 1-1/2 minutes till soft, now fold in coconut.
Spoon batter into the cake pan and spread uniformly.
Bake cake in the middle of the oven till golden brown for about 45 to 50 minutes at the temp of 175 C.
Cool cake in the pan on a rack for about 1 hour, then invert onto the rack.
Remove paper and invert again onto another rack to cool completely.
Coconut Cake is ready to serve.