Preheat oven to 350ºF. Grease and flour 3 round 8" cake pans. Separate the cherries from the syrup by placing in a kitchen strainer over a bowl. Reserve ½ cup of the syrup.
In a large mixing bowl, add cake mix, buttermilk, ½ cup cherry syrup, melted butter, eggs and vanilla. Blend with an electric mixer until the batter is combined. Divide the batter evenly between the prepared pans.
Bake the cakes until they spring back when lightly pressed with your finger, 28-30 minutes.
Remove the pans from the oven and allow to cool for 10 minutes. Remove the cakes from the pans and cool completely for 30 minutes.
Place the white chocolate in a small glass bowl. Microwave on high for 1 minute. Remove from microwave and stir until smooth.
Place the cream cheese and butter in mixing bowl. Beat until well combined. Add the melted white chocolate, vanilla and 2½ cups of the confectioners’ sugar. Blend on low speed until the sugar is incorporated. Add the additional sugar and blend until the frosting is fluffy.
To Frost: Place one cake layer on a serving platter and spread with frosting, top with cherries. Place the second layer on the first and frost. Place the third cake layer on top and frost top and sides of cake. Sprinkle and gently press coconut over entire cake.