1.Heat oven to 160C fan bake. Grease a 19cm round cake tin and line the base with baking paper. Place butter and sugar in a bowl, then beat until pale and creamy. Beat in egg.
2.Sift flour and baking powder over the creamed mixture and then stir to combine. Combine food colouring with milk and stir into the creamed mixture. Stir in the desiccated coconut.
3.Spread the mixture in the prepared tin, smoothing the surface. Bake for 45 minutes or until a skewer inserted comes out clean. Remove to cool, then spread with icing.
4.To make the icing, place all ingredients in a bowl and beat to combine. Use the extra thread coconut to sprinkle over the icing to decorate.
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