How to Make It
Cream butter; gradually add sugar, beating well at medium speed of an electric mixer. Add eggs, one at a time, beating well after each addition.
Combine flour and baking powder; add to creamed mixture alternately with milk, beginning and ending with flour mixture. Mix after each addition. Stir in vanilla.
Pour one-third of batter into a greased and floured 9-inch round cake pan. Stir cinnamon and next 3 ingredients into remaining batter; pour into 2 greased and floured 9-inch round cake pans. Bake at 350˚ for 20 to 25 minutes or until a wooden pick inserted in center comes out clean. Cool in pans 10 minutes; remove from pans, and cool completely on wire racks.
Prepare the Lemon-Coconut Frosting: Dissolve cornstarch in 1/2 cup water; set aside. Bring remaining 1 cup water to a boil in a medium saucepan. Stir in sugar, lemon rind, and lemon juice. Return to a boil, and cook to soft ball stage (236˚), stirring often. Gradually stir in cornstarch mixture; cook over medium heat, stirring constantly, until mixture is thickened and bubbly. Remove from heat; stir in coconut. Cool. Stir frosting just before spreading on cake.
Spread Lemon-Coconut Frosting between layers and on top and sides of cake, stacking white layer between spiced layers. Garnish, if desired.