Preheat your oven to 350°F (175°C). Grease two 9-inch round cake pans with butter or cooking spray and line them with parchment paper.

In a large mixing bowl, combine the dry ingredients: flour, sugar, baking powder, baking soda, salt, cinnamon, and nutmeg. Whisk until evenly distributed.

Add applesauce, drained crushed pineapple, and eggs to the dry ingredients. Mix on medium speed until well combined and smooth, for about 2-3 minutes.

Gently fold in grated carrots and shredded coconut using a spatula until evenly distributed.

Pour the batter evenly into the prepared cake pans and smooth the tops.

Bake for 25-30 minutes, or until a toothpick inserted in the center comes out clean.

Let the cakes cool in the pans for about 10 minutes before inverting onto wire racks to cool completely.

Prepare the cream cheese frosting by beating softened cream cheese and butter until fluffy. Add vanilla extract and gradually mix in powdered sugar until creamy.

Once cooled, frost the top of one cake layer and place the second layer on top, covering the entire cake with frosting.

Decorate the top with toasted pecans or shredded coconut, if desired.