In a large bowl, combine the first seven ingredients. Combine the oil, lemon juice and vanilla. Drain pineapple, reserving juice. If necessary, add enough water to juice to measure 3/4 cup. Add oil mixture and pineapple juice mixture to dry ingredients; stir just until moistened. Fold in pineapple.
Place in a greased 13x9-in. baking dish. Bake at 350° for 40-45 minutes or until toothpick inserted in the center comes out clean. Cool on a wire rack.
For frosting, in a large , beat cream cheese and sugar until smooth. Fold in whipped topping. Spread over cake; sprinkle with coconut if desired. Store in the refrigerator.