Place the softened cream cheese and softened butter in a large bowl. Mix on medium with a hand mixer until light and fluffy (about 2 minutes).
Mix in the orange zest and orange juice.
Add 1 cup of powdered sugar, mix until combined, and repeat with the remaining powdered sugar.
Place one cooled cake layer on a cake plate or serving platter.
Top with approximately three-quarters cup of frosting and spread evenly across the cake.
Place the other cake layer on top, and cover the top and sides with the remaining frosting.
Sprinkle the coconut over the top and sides of the cake, using your palm to help the coconut adhere to the sides of the cake.
To make an orange garnish, place an orange on its side on a cutting board. Cut the orange into thin slices.
Cut a slit halfway through each orange slice. Pick up the slice and twist it gently into a swirl.
Cut the cake into slices and serve.
Store any remaining cake in a covered container in the refrigerator.