Preheat oven to 160/180oC fan-forced. Grease 20x6.5cm round cake pan. Line with baking paper.
Using an electric mixer, beat butter and sugar until fluffy. Add eggs one at a time, beating well after each addition.
Sift half the flour and half the cocoa over butter mixture. Add half the coconut. Stir to combine. Add half the milk. Stir to combine. Repeat with remaining flour, cocoa, coconut and milk. Spoon into prepared pan. Smooth top. Bake for 55 minutes or until a skewer inserted in the centre comes out clean. Stand in pan for 10 minutes. Turn out onto a wire rack to cool.
Process cake in a food processor until it resembles breadcrumbs. Transfer to a bowl.
Process cream cheese and icing sugar together until smooth. Add to cake crumbs and stir to combine.
Line a baking tray with baking paper. Roll tablespoonfuls of mixture into balls. Place on tray and refrigerate for 4 hours or until firm.
Melt chocolate in microwave for 1 minute until melted. Pierce cake ball with a skewer, dip in melted chocolate and place on lined tray. Sprinkle with shredded coconut and place in fridge until set.