Preheat the oven to 350°F and line a baking sheet with parchment paper.
Toast the coconut lightly in a pan over medium heat until it turns slightly brown in color.
In a large bowl, mix together flour, cornstarch, coconut and salt.
In a stand mixer, cream together butter and sugar. Beat it at medium speed, scraping down the sides, for at least 2-3 min.
Add in the egg, lime zest and vanilla. Mix until everything is incorporated well.
Add the dry ingredients in batches and mix it well until a dough forms.
Flatten the dough, wrap it with plastic wrap, and refrigerate for at least an hour.
Once chilled, roll out the dough to about ¼-inch thickness and cut out cookies using your favorite cookie cutter.
Place the cutouts on the prepared baking tray and bake for 12-15 minutes or until the bottoms and sides start turning golden-brown.
Place on a wire rack to cool completely before adding glaze.
To make the glaze, add the lime juice and water to the powdered sugar and mix well — the consistency should be flowy but not runny. Add the zest, mix well and keep aside.
Once the cookies have cooled, apply a layer of the glaze on top of the cookie with the help of a spoon or a butter knife.
Spread it carefully making sure to leave some space on the sides of the cookie.
Sprinkle some zest on top for that beautiful look!
Notes
Coconut Lime Cookies will stay fresh for about 3-4 days when stored in an airtight container at room temperature or for about a week when stored in the fridge. Do not put the glaze in the fridge as it will harden.Desiccated coconut is a less dry, finer version of dried coconut. If you only have regular dried coconut, you could pulse it in a food processor to get it more fine, then toast it.