Puerto Rican Coconut Cake

2 3/4 cups all-purpose flour
4 teaspoons baking powder
1/2 teaspoon salt
3/4 cup butter or margarine
1 1/2 cups granulated sugar
1 cup coconut milk or sweet milk
1 teaspoon vanilla extract
4 large egg whites

Sift together flour, baking powder and salt; set aside. Cream butter. Add 1 cup of the sugar and cream well. Combine coconut milk or sweet milk and vanilla extract. Add dry ingredients to creamed mixture alternately with milk, beginning and ending with dry ingredients.

In a small bowl, beat egg whites until foamy. Gradually add remaining 1/2 cup sugar and beat until stiff and glossy. Fold beaten whites into the batter carefully. Bake in 2 (9-inch) layer pans at 350 degrees F for 25 to 30 minutes. Frost with favorite seven-minute frosting and sprinkle with coconut.