Pre-heat oven to 180°C (160°C fan-forced). Line the base and sides of 2 x 20cm deep cake pans. Place butter and sugar into the bowl of an electric mixer and beat until pale and creamy. Add eggs one at a time, mixing until well incorporated. Add lemon rind and vanilla.
Add flour, baking powder and soda alternately with the milk, until well combined and the batter is smooth.
Divide batter between prepared pans and bake for 50 minutes, or until an inserted skewer comes out clean. Cool for 10 minutes in pans before removing to a cooling rack. Once cooled completely, refrigerate covered until ready to decorate.
For the ears, draw two rabbit ears on a piece of baking paper and set aside on a flat tray or surface. Combine desiccated coconut with food dye in a small bag and shake well until coconut is pink. Place chocolate buttons in a heat proof bowl over a saucepan of gently simmering water. Stir regularly until just melted. Spoon chocolate over the ears template, ensuring it’s thick enough to be able to handle once set. Sprinkle the inner ears with the pink coconut, then the outer ears with some of the shredded coconut. Dip one end of the marshmallow in melted chocolate, then into pink coconut. Refrigerate ears and nose until set.
For icing, place the butter in a large mixing bowl. Beat with electric beaters until soft and creamy. Gradually add icing sugar and juice, mixing until smooth.
For assembly, cut each cake into two. Place one layer onto a serving plate, spoon a little icing on top and spread out evenly. Top with the second layer and repeat the process until all layers are assembled. Cover cake with the remaining icing and sprinkle with the remaining shredded coconut. Make a small incision in the top of the cake with a knife where the ears will go. Gently press the bunny ears into the top of the cake and decorate with the bunny nose.