Preheat oven to 350°F/180°C. Butter a 9-in cake pan. Line the bottom of the pan with a circle of parchment paper. Butter the parchment paper.
Let the cake cool then run a table knife around the inside edge of each pan to loosen the cake sides. Invert the cake onto the racks and peel off the parchment paper. Let cool completely before frosting.
Beat the cream cheese until smooth, about 3 minutes. Combine the butter and beat another 2 minutes. Add the confectioners' sugar and lemon juice and beat until fluffy, about 3 minutes. Spread the frosting over the top of the cake. Garnish the top evenly with the coconut. Refrigerate the cake for at least 45 minutes to set the frosting. Remove from the refrigerator 30 to 40 minutes before serving.
Recipe by Diane Morgan