Step 1: Preheat your oven to 350°F (175°C). Grease and flour a standard loaf pan, or line with parchment paper.
Step 2: In a large bowl, whisk together the all-purpose flour, granulated sugar, baking powder, and salt until well combined.
Step 3: In a separate medium bowl, whisk together the softened unsalted butter, eggs, milk, vanilla extract, shredded coconut, and lime zest until smooth.
Step 4: Pour the wet ingredients into the dry ingredients. Mix with a spatula or electric mixer on low speed until just combined and no streaks of flour remain. Be careful not to overmix.
Step 5: Pour the batter evenly into the prepared loaf pan.
Step 6: Bake in the preheated oven for 45-50 minutes, or until a wooden skewer or toothpick inserted into the center of the cake comes out clean.
Step 7: While the cake cools, prepare the glaze: In a small bowl, combine the powdered sugar and lime juice. Whisk until smooth and creamy. If the glaze is too thick, add a tiny bit more lime juice; if too thin, add a little more powdered sugar.
Step 8: Let the cake cool in the pan for about 10-15 minutes before inverting it onto a wire rack to cool completely. Once cool, drizzle the lime glaze generously over the top of the cake, allowing it to drip down the sides.
Step 9: Garnish the glazed cake with chopped nuts, granola, fresh lime slices, and additional coconut flakes if desired. Slice and serve immediately. Enjoy your tropical treat!