Preheat oven to 350 degrees and line with cookie sheets with parchment paper. Place sugar, cream cheese and lime zest in a large bowl. Pour warm butter over sugar and cream cheese and whisk until it's all combined. Add egg, milk and lime juice, whisk well. Add flour, salt, baking soda, baking powder and coconut. Mix with rubber spatula until combined. Form into 1-inch balls and lightly coat with powdered sugar. Place cookies on baking sheet 2-inches apart. Bake 11-12 minutes. Makes about 2 dozen cookies.