Resift flour with baking powder and salt. Cream shortening with 1 cup sugar until light and fluffy. Blend in flour mixture and champagne alternately, mixing to smooth batter.
Beat egg whites until stiff. Gradually beat in remaining 1/2 cup sugar, continuing to beat to stiff meringue. Fold about half of meringue into batter, mixing gently but thoroughly with whisk. Gently fold in remaining meringue.
Turn into 2 greased and floured 9-inch cake pans. Bake at 350 degrees F for 25 to 30 minutes, just until cake tests done. Let stand 10 minutes then turn out onto wire racks to cool.
When layers are cool, fill with Coconut Filling between layers. Using 2/3 cup Fondant Frosting, spread thin layer smoothly over top and sides. This seals any crumbs. Pour about 1/2 cup additional frosting over top of cake and spread quickly to smooth layer. Cover sides of cake with second layer of frosting.
Dip marshmallow quarters in remaining frosting to coat both sides and set randomly over top and sides of cake. Makes 10-12 servings.
Coconut Filling: Combine butter, marshmallows and wine in top of double boiler. Set over simmering water and stir occasionally until marshmallows are melted. Remove from heat and stir in coconut. Cool until thick enough to spread.
Fondant Frosting: Sift sugar into top of double boiler. Add corn syrup and water. Stir over simmering water until smooth. Blend in vanilla, salt, and almond extract. Stir in food color, if desired. Keep frosting warm while using so it spreads smoothly.