Preheat the oven to 425 degrees F and lightly mist a muffin pan with non-stick spray, or line with cupcake papers.
Place the flour, coconut, baking powder, salt, and lime zest in a large mixing bowl, and stir to combine.
Place the sugar and coconut oil in another bowl, and whisk together until combined.
Mix in the egg until incorporated.
Slowly pour in the coconut milk and coconut extract, and stir until combined.
Add the dry ingredients into the wet.
Stir together until just barely combined. (Do not overmix, or the muffins could come out tough. Batter will be lumpy.)
Place about ½ cup of batter into each well of the muffin pan, and bake for 5 minutes. Without opening the oven door, turn the temperature down to 350 degrees F and bake for an additional 15 minutes.
Cool completely before glazing.