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1. Preheat the oven to 325 degrees F (165 degrees C). Grease and flour a 10 inch tube pan. 2. In a large bowl, cream together the butter and cream cheese until well blended. Add sugar, and beat until light and fluffy. Blend in the eggs one at a time, then stir in the coconut extract. Mix in flour and baking powder until just moistened, then stir in coconut. Spoon batter into the prepared pan.
3. Bake for 1 hour and 20 minutes in the preheated oven, until a knife inserted into the cake comes out clean. Allow the cake to cool in the pan for 10 minutes before inverting onto a cooling rack.
Note: This cake recipe also does well baked in layers. Will make three 8 inch layers, or one 10 inch layer and one 6 inch layer. Reduce baking time if making as a layer cake, but keep the temperature the same. Test for doneness as indicated in recipe.
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