Heat oven to 350°F. Grease two 8-inch cake pans; line bottoms with parchment paper; then grease the paper.
With an electric mixer on high, beat whole eggs, ¾ cup xylitol and 1 tbsp coconut extract until ribbons form, about 5 minutes.
In three additions cup sift almond flour, baking powder and salt over egg mixture; fold in with a rubber spatula to combine.
Fold in ½ cup melted butter. Then pour batter into prepared pans.
Bake for 22 minutes until cake springs back in middle when lightly touched. Cool in pans on wire racks 5 minutes. Line racks with paper towels and invert cake layers. Gently peel off parchment and cool completely.
For frosting: in a double boiler or a bowl placed over simmering water, whisk egg whites, ¾ cup xylitol and salt until temperature reaches 130°F. Transfer whites to mixing bowl and beat on high speed until cool and fully whipped. Reduce speed to medium and beat in 1½ cups room temperature butter 1 tablespoon at a time until well combined, thick and creamy, about 10 minutes – do not rush the process.
Place one cake layer on serving plate. Mix 1 cup frosting with half the coconut (⅓ cup); frost bottom layer. Place top cake layer over bottom layer. Cover top and sides with remaining frosting and pat remaining ⅓ cup coconut over frosting. Optional: toast coconut (3-5 minutes at 350°F). Makes 12 servings.