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Heat the oven to 350 degrees. Grease and flour (I use a combo baking spray) a 9-10 inch bundt pan. I recommend choosing a bundt design that is a little flat on top, to allow the coconut flakes somewhere to stick. If you use the smaller bundt pan, you will have a little batter leftover for mini loaf cakes. Set aside.
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Melt the coconut oil in a small pan or microwave. Add it to a large bowl and whisk in the sugar, milk, eggs, vanilla and lime zest.
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In a medium bowl, whisk together the flour, baking powder, nutmeg and salt. Fold the dry ingredients into the wet ingredients until incorporated--but do not overmix. Scrape the batter into the prepared pan(s). Bake until golden brown and a toothpick inserted in the center comes out clean, maybe 20 minutes for mini loaf cakes and about 60 minutes for the bundt cake.
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Let set in pan for 15 minutes before inverting onto a cooling rack with wax paper placed under it.
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While the cake is baking, make the glaze: toast the coconut flakes over medium heat until light tan in color and quite fragrant with coconut. Add the water, sugar and salt--much of the water will instantly evaporate from the heat which is fine, that is why there is twice as much water. Bring to a boil and stir until the sugar is dissolved and clear. Then remove from the heat.
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When the cake has been inverted onto a cooling rack, scrape the sticky coconut flakes onto the top of the cake. Just do your best to distribute them evenly and do not worry about it beyond that. Then pour the glaze over the flakes to help them stick and to allow the glaze to coat and permeate the cake.
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Let cool completely before slicing.