Step 1: Preheat your oven to 350°F (175°C) to ensure even baking.
Step 2: In a large mixing bowl, whisk the eggs and 1 cup of sugar until light and fluffy, about 3-5 minutes. Fold in the flour and baking powder gently.
Step 3: Combine lime juice with warm water in a separate bowl, then gradually mix into the batter until well combined.
Step 4: Pour the batter into a prepared baking pan and bake for 25-30 minutes until a toothpick comes out clean. Cool in the pan for 10 minutes before transferring to a cooling rack.
Step 5: For the frosting, beat cream cheese and sugar until smooth, then mix in sour cream, lime juice, and zest until fluffy.
Step 6: Once the cake is cool, spread the frosting on top and sprinkle with shredded coconut, pressing gently.
Step 7: Chill in the refrigerator for at least an hour before serving.