01 - Preheat oven to 350°F. Line two baking sheets with parchment paper.
02 - Toast shredded coconut in a dry skillet over medium heat, stirring frequently until golden brown, about 3–4 minutes. Set aside to cool.
03 - In a large bowl, whisk together flour, sugar, baking soda, and salt until well blended.
04 - In a separate bowl, whisk together melted coconut oil, coconut milk, lime juice, lime zest, and vanilla extract until thoroughly combined.
05 - Pour wet ingredients into dry ingredients and mix until just combined. Gently fold in 3/4 cup of the toasted coconut, reserving the remainder for topping.
06 - Scoop 1.5 tbsp portions of dough using a medium cookie scoop, roll into balls, and optionally roll in additional sugar. Place on prepared baking sheets 2 inches apart.
07 - Gently flatten each ball with your fingers or the bottom of a glass. Sprinkle with reserved toasted coconut and extra lime zest if desired.
08 - Bake for 11–13 minutes until edges are set and cookies are just beginning to turn golden.
09 - Let cookies rest on baking sheet for 5 minutes, then transfer to a wire rack to cool completely.