In a large mixing bowl, cream together 1 cup of room-temperature unsalted butter and ¾ cup of confectioner's sugar until light and fluffy, about 1 minute. Add lemon zest, lemon juice, and vanilla extract, mixing until just combined.

Gradually add 2 cups of all-purpose flour and ¼ teaspoon of salt to your butter mixture, mixing until just combined. Gently fold in 1 cup of shredded coconut.

Cover the dough with plastic wrap or a clean kitchen towel and refrigerate for 30 minutes.

Preheat your oven to 375°F (190°C) and line a baking sheet with parchment paper.

After chilling, scoop out portions of the dough and roll them into 1-inch balls, placing them 1 inch apart on the baking sheet.

Bake the cookies for 10-12 minutes or until the edges are lightly golden. Allow the cookies to cool on the baking sheet for 5 minutes before transferring to a cooling rack.

Once the cookies are slightly cooled, roll them in the remaining ½ cup of confectioner's sugar until well-coated.