Cream together the softened butter and granulated sugar until fluffy, about 2-3 minutes. Add lime extract and vanilla; mix until combined. Incorporate eggs one at a time, then add key lime zest.

In a separate bowl, sift together flour, baking soda, and salt. Gradually add to wet ingredients, mixing on low speed until combined.

Fold in white chocolate chips and coconut gently, ensuring even distribution. Chill dough for 30-60 minutes.

Preheat oven to 375°F (190°C). Scoop dough onto baking sheets lined with parchment paper, spacing 2 inches apart. Bake for 12-14 minutes until edges are golden.

Allow cookies to cool on the baking sheet for about 3 minutes, then move to a wire rack to cool completely.