You can use the coconut milk instead of milk if the recipe calls for milk. I do it all of the time and it works the same! (Do not use the sweetened cream of coconut like what they use for pina coladas - use the unsweetened coconut milk for cooking). This gives it a very milk coconut flavour. You can add some shredded coconut for texture and extra flavour if you like.
You can also make a coconut simple syrup and brush on the cake as well - just add equal parts of water and sugar and bring it to a boil for a few minutes. Add the coconut and let it steep until cool. Then strain and use.
Hope that helps!
Sunny Smiles from the Cayman Isles!
Sunny Smiles from the Cayman Isles!