Preheat oven to 350 degrees. Grease two 9 inch round cake pans.
blend all ingredients except coconut in large bowl. Beat 4 minutes at medium speed. Fold in coconut. Pour batter into both 9 inch cake pans. Bake for 25 to 30 minutes. Let stand in pans for 15 minutes..remove and cool completely on wire racks.
FROSTING: In a large bowl mix all ingredients except cool whip. Blend well. Now fold in cool whip. Spread frosting between layers and then frost entire cake. Top with Toasted coconut, a few pineapple tidbits and maraschino cherries. Keep refrigerated until served.