Beat together the cream cheese and butter for 2 minutes. Scrape down the sides and bottom of the bowl. Add sweetener and beat for 2-3 minutes intil incorporated.
Add the vanilla and 1 tbsp heavy cream, beat to combine. Add more heavy cream and beat to combine, if the consistency of the icing, so it is not too thick, but stays fluffy.
Preheat oven to 350 F. Line the bottoms of two 8-inch cake pans with parchment paper. Grease over the parchment and the sides of the pans. Set a side.
In the bowl of a stand mixer, fitted with the paddle attachment, beat together the eggs and erythritol for 5 minutes on medium-high speed, until fluffy. Add vanilla extract.
In a bowl, sift together the coconut flour, almond flour, salt, cinnamon and baking powder. Fold the dry ingredients into the egg mixture.
Add the coconut, stir to combine. Add carrots, mix to combine.
Add the melted butter at the end, mix to incorporate.
Divide the batter between both pans. Bake for 30-3 minutes, until the tops are set and toothpick inserted comes out clean.
Let the cakes cool inside the pans for 10-15 minutes, then carefully invert onto a cooling rack. Let them cool completely.
If the cake tops are uneven, use a serrated knife to level them.
Place one cake layer on a platter. Carefully spread 1/2 of the icing over it. Top with the second cake layer. Spread the remaining frosting on top. I left this keto carrot cake naked, but you can spread some frosting on the sides of it if you'd like. Top with shredded coconut (optional).
Refrigerate for at least 30 minutes, then slice and serve.