Preheat oven to 350°F (175°C).
Line baking sheets with parchment paper.
Beat cream cheese and butter until fluffy.
Add sugar and mix well.
Beat in egg, lemon juice, and zest.
Add vanilla extract and mix.
Combine flour, baking powder, and salt separately.
Gradually add dry ingredients to wet mixture.
Fold in shredded coconut gently.
Drop rounded tablespoons onto prepared sheets.
Bake for 12-15 minutes until edges set.
Cool on sheets for 5 minutes.
Transfer to wire racks completely.