Preheat oven to 325°F. Prepare two 8 in. round pans with parchment paper and vegetable pan spray.
In medium bowl, whisk together flour, baking powder, and salt.
In large bowl, beat butter and sugar with electric mixer until light and fluffy. Add almond and coconut extracts and egg whites. Beat well. Alternately add flour mixture and milk to butter mixture, beating well after each addition. Stir in shredded coconut. Divide batter evenly between pans.
Bake 40-42 minutes, or until toothpick inserted in center comes out clean. Cool 10 minutes on cooling grid; remove from pan and cool completely.
For icing, in large bowl, beat cream cheese and butter with electric mixer until light and fluffy. Gradually add confectioners sugar, one cup at a time. Add milk and vanilla extract. Beat on high until smooth. Using a spatula, ice cake with icing. Gently pat coconut onto icing.