Whisk together the flour, baking powder and salt and set aside.
Using an electric mixer on medium speed, beat the butter, sugar and coconut until light and fluffy. Add the eggs, one at a time, mixing well after each addition. Mix in the lime juice and coconut extract.
Reduce mixer speed to low. Gradually add the flour mixture, mixing just until combined.
Refrigerate dough for 30 minutes.
Preheat oven to 350 degrees F. Line baking sheets with silicone liners or parchment paper. Place the confectioners’ sugar in a small bowl.
Using a small cookie scoop (about 1 1/2 tablespoon capacity), roll chilled cookie dough into 24 balls. Then roll each in powdered sugar, making sure to coat completely.
Place cookies on the prepared pans, leaving about 2 inches between the cookies. Bake 14 to 16 minutes, until cookies are puffy and feel firm on the edges to touch.
Cool the cookies on the pan for 5 minutes. Then transfer them to a wire rack to cool completely.