Preheat oven to 350°. Grease and flour a 10-in. fluted tube pan.
In a large bowl, combine cake mix, pudding mix, eggs, coconut milk and oil; beat on low speed 30 seconds. Beat on medium speed 2 minutes. Stir in coconut and butterscotch chips. Transfer to prepared pan.
Bake until a toothpick inserted in center comes out clean, 40-45 minutes. Cool in pan 10 minutes before removing to a wire rack to cool completely. For glaze, in a microwave, melt butterscotch chips and cream; stir until smooth. Drizzle over cake; sprinkle with coconut.