Preheat the oven to 350 degrees(F).
In a large mixing bowl, or the bowl of a stand mixer, sift the flour, cornstarch, and baking soda. Stir in the salt. Set aside.
In a separate large mixing bowl, whisk together the vegan butter, coconut oil and sugar until smooth.
Add the applesauce, vanilla and coconut extract, and the sour cream to the mixing bowl. Continue to whisk to fully combine.
Now, with a hand mixer or with the stand mixer paddle attachment running, start to add the wet ingredients to the dry about 1/3 at a time. Continue mixing until almost fully combined.
As the mixer is still running, add the coconut milk to the batter as well. Let mix, scraping down the sides as needed until just fully combined. You don't want to over mix.
Pour an equal amount of the batter into two 8 inch cake pans that are lined with parchment paper. Smooth the batter our evenly.
Bake for 30-32 minutes or until a toothpick comes out clean from the center of the cakes.
Let cool completely, then layer your cakes. Smooth frosting over the first layer, adding coconut to the center if desired. Place the second layer on top of the first, then completely frost the whole cake. Press the coconut all over the top and sides of the cake.
Serve!