Line a springform pan bottom with parchment paper and then grease the pan with coconut oil.
In a bowl start by mixing all the ‘wet’ ingredients (coconut oil, coconut milk, vinegar, lemon juice, vanilla extract) with a hand or stand mixer.
To the mixing bowl add the sugar and beat again. Then mix in the flour, baking soda, and salt and mix again; then fold in lemon zest and 1/4 cup shredded coconut.
Spoon into springform pan and bake for 25-30 minutes, or until a toothpick comes out clean. Leave oven on. Allow cake to cool completely before frosting it.
While the cake is cooling, line a baking sheet with aluminum foil and add remaining shredded coconut to the baking sheet. Bake for 5 minutes at 350°F or until golden brown. Remove from oven and allow to cool.
To make the frosting cream together coconut oil and milk, then add vanilla extract. Slowly add the powdered sugar and mix until frosting is smooth and thick.
Spread frosting on the top of the cake, then sprinkle toasted coconut around the edge of the cake, and layer thinly sliced lemons in the top center of the cake.