Preheat oven to 180 degrees (fan forced). Grease and lightly flour a 27x8cm fluted ring cake tin.
Beat the butter, vanilla sugar and sugar until well combined. Beat in one egg at a time
Add the grated lemon rind, coconut, self-raising flour and milk. Mix until combined.
Pour cake batter into cake tin and bake for 40 minutes or until skewer comes out clean.
Combine the lemon juice and icing sugar. Microwave on high for 40 seconds and mix until smooth. Pour syrup over the hot cake as soon as it is removed from the oven. When cooled, decorate with a dusting of icing sugar.