In a mixing bowl, cream butter and sugar. Add eggs, one at a time, beating well after each addition. Beat in vanilla.
Combine flour, baking powder and salt; add to creamed mixture alternately with milk. Stir in coconut.
Pour into a greased 9"x5"x3" loaf pan. Bake at 350 for 1 hour or until a toothpick inserted near the center comes out clean.
Cool for 10 minutes before removing from the pan to a wire rack to cool completely.
(This ends up being a good batter to put pudding mix into, as well, for when you're out of coconut. I've added a small box of butterscotch pudding, and it came out being absolutely delicious.).