Measure sifted flour, baking powder, and salt and sift together. Cream the butter and gradually add the sugar and cream until light and fluffy. Add the eggs one at a time, beating well after each addition. Alternately add the flour mixture and the milk, beating after each addition until smooth. Stir in the vanilla and the coconut. Pour the batter into two 8-inch layer pans lined on the bottom with paper. Bake in a moderate oven (350 degrees F) for 30 to 35 minutes. Cool for 10 minutes in the pans, then remove and finish cooling on cake racks. Frost with Seven-Minute Coconut Frosting.