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 (not the lemon juice), coconut, self-raising flour and milk. Mix until combined. The juice will be used in step 5 for the syrup once the cake is baked.
Pour cake batter into cake tin and bake for 40 minutes or until skewer comes out clean. Leave the cake in the cake pan whilst you prepare the syrup.
Whilst the cake is still hot, combine the lemon juice and icing sugar. Microwave on high for 40 seconds and mix until smooth. Pour syrup over the hot cake whilst it is still in the pan. rnWhen cooled, decorate with a dusting of icing sugar.