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Preheat oven to 325 degrees. Butter and flour 2 nine-inch cake pans. Whisk together flour coconut baking powder and salt. Place sugar and egg yolks in a mixer fitted with blade attachment and process until fluffy - 5 to 8 minutes - scraping sides down as needed. Add mayonnaise coconut milk, buttermilk, Fustini’s Coconut Balsamic Vinegar, and vanilla extract and mix to blend. Add dry ingredients and mix only until the dry and wet come together. Whisk egg whites to soft peaks then fold into the cake batter.
Divide batter between the two pans and bake in a hot oven until the toothpick comes out clean - 25 minutes. Let cool for 20 minutes, then run a sharp knife around the edge and take cakes from pans. Let cool completely before frosting.
Place egg whites in mixer fitted with a whisk attachment. Place sugar and water in a medium-size pot over moderate heat and cook until sugar has fully dissolved. Cook an additional 3 minutes. Process egg whites to stiff peaks. With the mixer running, slowly drizzle the sugar syrup into the egg whites then beat to stiff.
Frost the cake with the meringue then cover with coconut.
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