01 - Preheat oven to 350°F. Grease and line two 9-inch round cake pans with parchment paper.
02 - Whisk together flour, baking powder, baking soda, and salt in a medium bowl.
03 - Beat granulated sugar, brown sugar, butter, and oil until light and fluffy, approximately 2-3 minutes.
04 - Add eggs one at a time, beating well after each addition. Mix in vanilla extract.
05 - Fold in drained pineapple and shredded coconut until evenly distributed.
06 - Add dry ingredients in three additions alternating with milk, beginning and ending with dry ingredients. Mix until just combined.
07 - Divide batter evenly between prepared pans. Bake for 30-35 minutes or until toothpick inserted in center comes out clean.
08 - Let cakes cool in pans for 10 minutes, then turn out onto wire rack to cool completely before frosting.
09 - Beat cream cheese and butter until creamy and smooth. Gradually add powdered sugar, vanilla, and salt, beating until fluffy.
10 - Place one cake layer on serving plate. Spread frosting generously. Top with second layer and frost top and sides.
11 - Arrange fresh strawberries and blueberries in patriotic pattern. Sprinkle with toasted coconut if desired.