For the frosting, in the bowl of an electric mixer fitted with a paddle attachment, combine the cream cheese, butter, vanilla and . Add the confectioners' sugar and mix until just smooth (don't whip!).
To assemble, place 1 layer on a flat serving plate, top side down, and spread with frosting. Place the second layer on top, top side up, and frost the top and sides. To decorate the cake, sprinkle the top with coconut and lightly press more coconut onto the sides. Serve at room temperature.