Preheat the oven to 350°. Line 2 (or 3) rimmed baking sheets with parchment paper.

Whisk the flour, grated coconut, baking powder, baking soda, and salt together in a medium bowl. Set aside.

Place 1 1/2 cups of the sugar, the cream cheese and the lime zest in a large mixing bowl. Place the remaining 1/4 cup sugar on a plate or flat bottomed bowl and set aside. Pour the warm butter over the sugar and cream cheese and whisk to combine (I use my mixer and beater blade). Some small lumps of cream cheese will remain, but they'll smooth out later. Whisk in the oil until incorporated. Add the egg, milk and lime juice; continue to whisk until smooth. Add the flour mixture and mix with a rubber scraper (or mixer) until a soft homogenous dough forms.

Use a cookie scoop or spoon to measure out roughly 2 tablespoons of dough per cookie. Using your hands, briefly roll each piece of dough into a ball (don't overwork the dough - they don't need to be perfect). Place 10-12 cookies on a baking sheet (the cookies are big, so I do 10 on a sheet, alternating rows of 2 and 3 so they don't run into each other). Dip the bottom of a drinking glass into the bowl of cookie dough to moisten it, then dip the bottom of the glass into the reserved 1/4 cup sugar. Use the sugared glass to flatten the dough balls until they're about 2 inches in diameter. Repeat until all cookies are flattened and then sprinkle the tops of the cookies evenly with the remaining sugar (discard any excess).

Bake the cookies, (one sheet at a time is recommended, but who has time for that?!), until the edges are set and beginning to brown, 11 to 13 minutes, rotating the sheet after 7 minutes. Cool the cookies on the baking sheet for 5 minutes. Using a spatula, transfer the cookies to a wire rack and cool to room temperature (if you can wait that long to eat them).