1 cup desiccated coconut
250g unsalted butter, chopped, at room temperature
1½ cups caster sugar
1 tsp finely grated lime rind
4 eggs, at room temperature
1¹/³ cups self-raising flour
2 tblsps lime juice
2 tblsps milk
Extra desiccated coconut and finely grated lime rind, to decorate
1½ cups icing sugar mixture
1 tsp lime juice
3-4 tsps boiling water
Grease a deep, 24cm round bundt pan (12-cup capacity). Add ¼ cup of the coconut. Shake pan well to coat base and side. Discard any excess.
Place butter, sugar and rind in food processor. Process for about 30 seconds, or until combined and pale.
With motor operating, add eggs, one at a time. Add flour, juice, milk and remaining ¾ cup coconut. Process for 10 seconds. Scrape down side of bowl. Process for a further 10 seconds, or until smooth. Spoon into prepared pan. Smooth over top.
Cook in a moderately slow oven (160C) for about 55 minutes, or until a skewer inserted into the centre comes out clean. Remove. Stand in pan for 10 minutes. Turn out onto a wire rack to cool completely.
To make icing, place sugar and juice in a small bowl. Stir in enough water to form a smooth consistency.
Spoon icing over cake. Sprinkle with combined coconut and rind.