Steps:
- 1. Adjust oven rack to middle position and heat oven to 350. Line 2 large rimmed baking sheets with parchment. 2. Whisk flour, coconut, baking soda, baking powder, and salt together in medium bowl. Set aside. 3. Place 1 1/2 C sugar, lime zest, and cream cheese in large bowl. Place remaining 1/3 C sugar in a pie plate. Pour warm butter over sugar and cream cheese and whisk to combine. Whisk in oil. Add egg, milk, and lime juice; continue to whisk until smooth. Add flour mixture and mix with rubber spatula until soft homogenous dough forms. 4. Divide dough into 24 pieces, about 2 T each. Using hands, roll dough into balls and roll in sugar. Place 12 balls on each cookie sheet. Using the bottom of a drinking glass, flatten dough balls until 2 inches in diameter. Sprinkle tops with more sugar. 5. Bake until edges are just beginning to brown, 11-13 min., rotating after 7 min. Cool on baking sheets for 5 min. Transfer to wire rack to cool to room temperature.
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