Grease and line the base and sides of your 18cm (7 inch) round loose bottomed or springform cake tin before you start so that it's ready to go when you need it.
Make The Coconut Sponge Batter
Preheat the oven to 180C / 160C fan / 350F.
To make cake batter, start by placing the caster sugar and softened butter in a large mixing bowl. Beat with an electric whisk or by hand until pale and fluffy.
Add the eggs, one at a time while whisking until combined.
Add the self-raising flour and fold through with a silicone spatula.
Add the desiccated coconut plus the juice and zest of one lime. See notes on lime sizes below. Gently fold through to combine.
Spoon the batter into your prepared cake tin and level off.
Bake for about 1 hour 45 minutes or until firm all the way across. Check that it's cooked through by pushing a skewer all the way into the centre - it should come out clean.
Make The Coconut Drizzle
You can make your coconut drizzle towards the end of the sponge's baking time.
Start by putting the lime juice and zest, coconut water and icing sugar in a small saucepan. Remember again that my limes may vary in size to yours and adjust accordingly. Gently mix together until there are no lumps.
Place on the stove and bring to the boil, then boil for 3 minutes. Be careful, it will be very hot. The syrup should change from opaque to translucent and be thickened.
Take the cake from the oven and prick holes all over, about 3/4 of the way down with a long skewer.
Reserve 2 tbsp in a bowl and pour the rest slowly all over the cake.
Leave to cool completely in the tin.
Decorate Your Coconut Drizzle Cake
When your coconut drizzle cake is completely cool, transfer it to a cake board.
Combine the reserved syrup with the milk and icing sugar. Whisk to create a thick, white icing.
Pour over the top of the loaf and gently coax down the sides to create some drips.
Top with the coconut chips and allow to set.
Slice with a serrated knife and enjoy!
Notes
My limes weighed about 55-65g (about 2 ounces) each and yielded 20-25ml (3/4 fl oz) juice per lime. If yours are bigger or smaller, adjust accordingly.