Preheat the oven to 325F. Grease and flour a 10 inch

tube pan. In a large bowl, cream together the butter

and cream cheese until well blended. Add sugar, and

beat until light and fluffy. Blend in the eggs one at

a time, then stir in the coconut extract. Mix in flour

and baking powder until just moistened, then stir in

coconut. Spoon batter into the prepared pan.

Bake for 1 hour and 20 minutes in the preheated oven,

until a knife inserted into the cake comes out clean.

Allow the cake to cool in the pan for 10 minutes

before inverting onto a cooling rack.