Pre-heat oven to 350°F Spray two 8-inch cake pans with parchment paper.
Mix the wet ingredients in a large bowl until smooth.
Combine the dry ingredients in another bowl until well combined. Mix the dry ingredients gradually into the wet mixture. Continue mixing until well combined. Do not overmix or the cake will become dense.
Mix the carrots and batter together until they are well combined.
Divide the batter equally between the pans. Bake the batter for 30 to 35 minutes or until a toothpick inserted in the middle comes out clean.
Allow the cake to cool in the pan for about 15-30 minutes, then invert it onto cooling racks. While the cake cools, prepare the frosting.
Frosting
Blend the butter and cream cheese until smooth. Mix in the sweetener until well combined. Continue to mix in the vanilla. Mix in the heavy cream one at a time, until you have fluffy frosting.
Let the cake cool completely.
Spread the frosting over the top of your bottom layer. Layer the top layer over it. Spread the remaining frosting along the sides. Sprinkle coconut if desired.
Refrigerate the finished cake for at most 1 hour. Then, store any leftovers in a refrigerator.