In a large bowl, mix together the butter and sugar until they are well combined.
Add the eggs, one at a time, and mix well.
Add half of the flour, the powder milk or coconut milk, baking powder, nutmeg, and salt to the bowl and mix everything together.
Add the remaining flour and milk to the bowl and mix until everything is well combined. Be sure to scrape the sides of the bowl to ensure that all of the ingredients are fully incorporated, but be careful not to overmix.
Add the rum and coconut extract and mix one more time.
Spray a baking pan with bakers joy spray and add the pecans to the bottom of the pan. Pour the batter on top of the pecans and tap the pan on the counter to remove any air bubbles.
Place the pan in the oven and bake for 50-55 minutes, or until a toothpick inserted into the center of the cake comes out clean.
How to make Caribbean Rum Cake Glaze
While the cake is baking, make the glaze by heating the butter, sugar, rum, and water in a small pot over low to medium heat. Stir the mixture constantly to prevent it from burning.
Once the cake is finished baking, allow it to cool for 15 minutes. Use a skewer to poke holes in the cake, making sure to reach the bottom of the pan. Pour the glaze over the top of the cake.
Allow the cake to cool for an additional 15 minutes, then use a plate to flip the cake over and reveal the pecans on the surface.