Preheat oven to 350 degrees.
Roll out parchment paper and trace around the bottom of 2 9-inch round cake pans. Cut out the circles and place at the bottom of your pans.
Grease the sides of pans liberally (spread butter or coconut oil). Lightly dust with flour all around. Set aside.
In a bowl, sift together flour, baking powder, baking soda and salt. Set aside.
In another bowl, cream together butter and sugar for 3-5 minutes.
Add in applesauce and mix just until combined.
Add the extracts and mix again.
Pour the canned coconut milk and apple cider vinegar together in a separate bowl.
Alternate adding the dry ingredients and the milk. Mixing just until combined.
Fold in ½ cup coconut flakes.
Bake for 45 to 55 minutes or until a toothpick inserted comes out clean.
Remove from the oven. Let the cakes cool for 30 minutes in the pan. Then, turn them onto a baking rack to finish cooling completely before frosting. (*See post notes if need faster).