Preheat the oven to 325ºF. With cooking spray, spray an 9x5 loaf pan with cooking spray. Set aside.
In a small mixing bowl, combine flour, baking powder, and salt. set aside.
In either a stand mixer fitted with the paddle attachment or with an electric hand mixer, cream the butter on medium speed and sugar together until light and fluffy. About 2 minutes
On medium to low speed, start beating in the eggs, one at a time mixing well after each addition. Add the coconut extract and mix on low just until combined.
With the mixer on low speed, add he flour mixture and coconut milk, mix just until just until smooth and there are no flour streaks remanding.
Pour into the prepped 9x5 inch loaf pan and bake in the center of the oven for 65 minutes, or until a toothpick inserted into the center comes out clean.
Remove from oven and let rest in pan for 10 minutes. With a butterknife, start to loosen edges and transfer onto a wire rack to finish cooling.
While the loaf is cooling, make the icing by combining the powdered sugar, coconut extract and milk, and spread it over the loaf. Sprinkle with additional shredded coconut as desired. Slice and serve.