1. Preheat your oven to 350°F (175°C).
2. In a bowl, cream together the softened butter, granulated sugar, and brown sugar until light and fluffy.
3. Add the egg, vanilla extract, and key lime juice, mixing until well combined.
4. In another bowl, whisk together the flour, shredded coconut, baking powder, and salt.
5. Gradually add the dry ingredients to the wet ingredients, mixing until just combined.
6. Chill the dough in the refrigerator for about 30 minutes.
7. Once chilled, scoop out tablespoon-sized portions of dough and roll them into balls.
8. Roll each ball in powdered sugar until fully coated.
9. Place the cookies on a baking sheet lined with parchment paper, spacing them about 2 inches apart.
10. Bake for 10-12 minutes or until the edges are lightly golden.
11. Allow the cookies to cool on the baking sheet for a few minutes before transferring them to a wire rack to cool completely.

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