Heat your oven to 350°F (175°C). Grease and flour a 9×5-inch loaf pan or line it with parchment paper.
In a dry skillet over medium heat, toast the shredded coconut for 2–3 minutes, stirring until golden and fragrant. Set aside to cool.
In a bowl, whisk together flour, baking powder, baking soda, salt, and lime zest. Stir in most of the toasted coconut (save some for topping).
Use a mixer to beat the softened butter and sugar for 3–4 minutes until light and fluffy.
Add the eggs one at a time, beating well after each. Mix in vanilla and coconut extract, if using.
Stir in sour cream, crushed pineapple, and pineapple juice. Add the dry ingredients and mix gently until combined—don’t overmix.
Pour the batter into the pan and smooth the top. Bake for 60–70 minutes, or until a toothpick comes out clean. Cover loosely with foil if it browns too fast.
Let the cake sit in the pan for 10–15 minutes, then move it to a wire rack to cool completely.
Mix powdered sugar and pineapple juice to make a glaze. Drizzle over the cooled cake and sprinkle with the remaining toasted coconut.