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1. Grease and flour three 9-inch round cake pans; set aside.
2. In a medium saucepan bring cranberry juice to boiling; add dried cranberries then return to boiling. Reduce heat and simmer for 1 minute. Remove from heat; cover and let stand at least 20 minutes. Drain.
3. Meanwhile, position two racks in center of oven. Preheat oven to 350 degrees F. In a medium bowl, combine the flour, baking powder, baking soda, and salt. In a large mixing bowl, combine 3/4 cup butter and the granulated sugar; beat with electric mixer on medium speed until light and fluffy. With mixer on low speed, beat in the egg whites, vanilla, and 1/2 teaspoon coconut extract. On low speed and making three additions, beat the flour mixture into the sugar mixture, alternating with the buttermilk until combined. Evenly divide batter among the prepared pans*.
4. Bake cakes for 18 to 20 minutes, until a wooden pick inserted in center of each cake comes out clean. Cool in pans on wire racks 10 minutes. Remove from pans; cool cakes completely on wire racks.
5. For frosting, in a large mixing bowl beat 3/4 cup butter with electric mixer on medium speed until smooth. Gradually add 2 cups of the powdered sugar, beating well. Slowly beat in coconut milk and coconut extract. Gradually beat in remaining powdered sugar until fluffy (beat in milk, 1 teaspoon at a time, if frosting appears dry).
6. Place one cake layer on a cake plate. Spread with one-third of the frosting. Spread the cranberries on frosting. Place a second cake layer on cranberry filling. Spread with one-third of the frosting, then top with 2/3 cup of the walnuts and 1/2 cup of the coconut. Top with remaining layer. Spread with remaining frosting. Top with remaining coconut and walnuts.