Preheat your oven to 150 C / Gas 2. Grease and line a large deep sided square or rectangle baking tin.
Cream the butter and sugar together. Add the remaining ingredients until the mixture drops off the spoon (add more milk if needed). Pour into your baking tray and cover with foil, leaving a fold in the middle of the foil to allow for steam.
Bake for 40 minutes to 1 hour. Remove from oven and pour the 2 teaspoons icing sugar mixed with 50ml water over the cake. Allow to cool.
For the icing, sieve the 130g icing sugar into a bowl and add a little water until thick but still runny enough to cover the cake well and stick to the spoon. Sieve the jam into the icing sugar to remove any seeds. Add a few drops of red or pink food colouring.
Spread icing over the cooled cake and allow it to run down the sides.
Sprinkle over the coconut and leave to set.
To create the fold in the foil lay it on your work surface and fold the middle over by about an inch. This will allow room for steam and ensure the top of the cake is even.