This Lime Coconut Cake is moist, buttery, and bursting with bright citrus flavor and tropical coconut in every slice. Made with fresh lime zest, shredded coconut, and creamy coconut milk, it's finished with a tangy lime glaze that takes it completely over the top. Easy to make and perfect for spring, summer, or any time you're craving something a little tropical!
Preheat and prep pan: Preheat your oven to 325°F / 165°C. Butter and flour a 8x4 inch loaf pan and set aside.
In a small bowl, rub the zest of 2 limes into white sugar with your fingertips until fragrant and the sugar turns pale green. This releases the essential oils and gives the cake maximum lime flavor.
In the bowl of a stand mixer fitted with the paddle attachment, or using a hand mixer, beat butter and the lime sugar on medium-high speed for about 3-4 minutes until the mixture is very light and fluffy.
Add eggs one at a time along with the vanilla extract, beating well after each addition and scraping down the sides of the bowl as needed.
With the mixer on low speed add the flour, baking soda, baking powder, salt and shredded coconut to the butter mixture in two additions, alternating with the coconut milk, beginning and ending with the dry ingredients. Mix just until incorporated — do not overmix.
Pour the batter into the prepared loaf pan and smooth the top. Bake for 55–60 minutes, or until the cake is golden brown and a toothpick inserted in the center comes out clean.
Remove from the oven and place on a wire rack to cool in the pan for 20–30 minutes. Then remove the cake from the pan and allow it to cool completely before glazing.
Make the lime glaze: In a small bowl, whisk together confectioners' sugar and fresh lime juice, adding lime juice gradually until you reach a thick but pourable consistency. Add more lime juice to thin or more sugar to thicken.
Glaze and serve: Drizzle the lime glaze over the completely cooled loaf. Allow the glaze to set for 10–15 minutes before slicing and serving.
Notes
Butter: Make sure your butter is fully softened to room temperature for the best creaming result. Cold butter won't cream properly and can cause a dense cake.
Coconut milk: Use full-fat canned coconut milk for the richest flavor and best texture. Shake the can well before measuring.
Pan Size: If you are using a 9*5 inch loaf pan then check the cake for doneness around 45 mintutes
Don't overmix: Once you add the flour, mix only until just combined. Overmixing develops gluten and will make the cake tough.
Check early: Ovens vary — start checking at 50 minutes. If the top is browning too quickly, tent loosely with foil.
Storage: Store in an airtight container at room temperature for up to 3 days, or refrigerate for up to 5 days. The glaze may absorb into the cake over time — both equally delicious!