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1
Preheat oven to 350 degrees.
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2
Spread the coconut on a parchment-covered baking sheet and toast for about 5 minutes or until a pale gold, watching carefully so the coconut doesn't burn.
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3
Transfer coconut to a small bowl and set aside to cool.
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4
In a medium bowl, sift the flour, cornstarch and salt.
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5
Using a pastry blender or two knives, cut in the butter until the mixture resembles crumbs.
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6
Add the toasted coconut, the sugar, lime zest and enough milk to form a stiff dough.
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7
Press the dough into a disk shape, wrap it in plastic wrap or wax paper and refrigerate for 30 minutes.
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8
Line two baking sheets with parchment paper.
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9
On a lightly floured surface, roll out the dough to a thickness of 1/4 inch and use a cookie cutter to cut out desired shapes.
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10
Transfer with a spatula to the prepared baking sheets, placing them 1 inch apart.
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11
Gather the dough scraps, re-roll, and continue cutting out cookies until all the dough is used.
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12
Bake for 12 to 15 minutes, or until pale gold, rotating the sheets halfway through for even baking.
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13
Transfer to racks to cool.
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14
For the frosting, combine the lime juice and confectioners' sugar.
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15
Blend well, adding more sugar if the mixture is too thin.
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16
When the cookies are cool, dip the tops in the frosting.
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17
Top with green sprinkles, if desired.
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18
Transfer cookies to a rack or flat surface.
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19
When the frosting is dry, store the cookies in an airtight container.