01 - Whisk together the all-purpose flour, baking powder, baking soda, and salt in a medium mixing bowl.
02 - Using an electric mixer in a large bowl, beat the unsalted butter with the granulated sugar until light and fluffy, about 2 minutes.
03 - Add eggs one at a time, beating well after each. Mix in the vanilla extract, key lime zest, and key lime juice until thoroughly combined.
04 - Gradually mix the dry ingredients into the wet mixture, stirring until just combined to avoid overmixing.
05 - Fold in the sweetened shredded coconut using a spatula until evenly distributed.
06 - Cover the cookie dough and refrigerate for at least 30 minutes to firm up.
07 - Preheat oven to 350°F. Line baking sheets with parchment paper.
08 - Portion dough into tablespoon-sized balls, roll each in powdered sugar until coated.
09 - Place dough balls 2 inches apart on prepared sheets. Bake for 10 to 12 minutes until edges are set and tops crackle.
10 - Let cookies cool on baking sheets for 5 minutes, then transfer to a wire rack to finish cooling completely.