Heat the oven to 350 F and spray an 8-inch cake pan with non-stick cooking spray.
In the work bowl of a stand mixer, or in a large bowl with a hand mixer, combine the sugar and coconut oil. Mix until thoroughly combined, about 1 minute. Add the eggs, one at a time, mixing well after each addition, about 30 seconds each, then stir in the vanilla.
In a separate bowl combine the flour, coconut flour, baking powder, baking soda, and salt. Combine the dry ingredients and the coconut milk with the sugar mixture and mix until just combined, about 10 seconds. Add the unsweetened coconut and stir until well combined, about 20 seconds more.
Spread the batter into the prepared pan and bake for 25 to 30 minutes, or until the cake springs back when pressed gently in the center and the edges of the cake have started to come away from the sides of the pan. Cool the cake in the pan for 10 minutes before turning out onto a wire rack to cool completely.
While the cake cools prepare the glaze.
Heat the coconut milk to a simmer in a small saucepan. Once it reaches a simmer pour the coconut into a small bowl and add the chocolate chips. Let stand for 1 minute then whisk until smooth. Cool to room temperature.
To assemble the cake, place the cake onto a decorative plate of cake stand. Pour the glaze onto the center of the cake and use the back of a spoon to spread the glaze just to the edges of the cake. Allow the gaze to drip naturally down the sides. Sprinkle the top with the toasted coconut. Let stand for 1 hour before serving so the glaze can set.
Recipe by Evil Shenanigans at http://evilshenanigans.com/2013/06/chocolate-glazed-coconut-cake/