1. Preheat oven to 350 F. Grease and flour 3 (8-inch) round baking pans according to package directions.
2. In a large mixing bowl, blend the cake mix, coconut milk, and egg whites. Beat at low speed until moistened (about 30 seconds). Beat at medium speed for two minutes. Pour batter evenly among the 3 prepared pans and bake for 18-21 minutes or until toothpick inserted into the center comes out clean.
3. Cool layers in pan on a wire rack for 15 minutes. Turn out of pan to cool completely before frosting.
4. Place one layer on a serving plate. Spread a thin layer of coconut frosting on top and sprinkle with 1/4 cup of coconut. Repeat with second layer. Top with the third layer and frost top an sides of cake with remaining frosting. Sprinkle remaining coconut on top and sides of cake.
* Substitution: 1 1/2 cups water, 2 tablespoons oil and 1/2 tsp coconut extract may be substituted in place of the coconut milk.
Makes 12 servings.