Preheat oven to 350 degrees F. Using softened butter or nonstick spray, coat a 10 inch bundt pan thoroughly so the cake doesn't stick.
In a medium bowl, combine flour, baking powder, and salt. Set it aside.
In the bowl of a stand mixer fitted with a paddle attachment, beat butter, sugar, and lime zest over medium speed. Beat until the butter and sugar mixture is creamy and pale in color.
Slowly beat in eggs, vanilla extract, coconut extract, and fresh lime juice until combined.
Beat in half the flour mixture and half of the coconut milk until combined. Then, repeat again with the rest until just combined. Don't over mix.
Using a spatula, fold the coconut into the batter.
Pour batter into the prepared bundt pan. Bake for 45 to 50 minutes, or until a toothpick inserted in the middle comes out clean with a few moist crumbs. Allow cake to cool for 10 minutes, before turning it out onto a cooling rack to cool completely.
Meanwhile, prepare the toasted coconut topping: Spread additional coconut on a baking sheet and place it in the 350 degree F oven. Watch it carefully so it doesn't burn. Remove coconut after about 5 minutes, or when it turns fragrant and perfectly golden brown.
When the cake is completely cool, about 1-2 hours after baking, make the glaze: In a small bowl, combine powdered sugar, coconut milk, lime zest, and coconut extract. Stir to combine.
Drizzle the coconut lime glaze over top and sprinkle with toasted coconut. The glaze will harden as it sits.