Preheat your oven to 350°F (175°C) and line a baking sheet with parchment paper.
In a large mixing bowl, cream together the softened butter and granulated sugar using an electric mixer until light and fluffy, about 3-4 minutes.
Beat in the egg until well combined.
Add the lime zest and lime juice, mixing until the ingredients are fully incorporated.
In a separate bowl, whisk together the flour, baking powder, baking soda, and salt. Gradually add this dry mixture to the wet ingredients, mixing until just combined.
Fold in the shredded coconut until evenly distributed throughout the dough.
Scoop tablespoon-sized balls of dough and place them onto the prepared baking sheet, spacing them about 2 inches apart.
Lightly flatten each cookie with the bottom of a glass or your palm, creating a slight disk shape.
Bake in the preheated oven for 10-12 minutes, or until the edges are lightly golden.
Remove from the oven and let the cookies cool on the baking sheet for 5 minutes before transferring them to a wire rack to cool completely.
Once cooled, dust the cookies with powdered sugar for an extra sweet finish.
Notes
Arrange the cookies on a decorative plate and serve with lime wedges for a vibrant touch.