Step 1

Grease a 19cm x 29cm lamington pan and line base with paper, then grease paper. Preheat oven to 180°C (160°C fan-forced).

Step 2

In a heavy frying pan, stir coconut constantly over heat until light golden brown. Remove from pan to cool.

Step 3

Cream butter and sugar in small bowl with electric mixer until light and fluffy. Beat in eggs one at a time, add honey, and beat until combined. Transfer mixture to a large bowl and stir in toasted coconut. Stir in half the sifted flour and half the milk until combined, then stir in remaining flour and milk.

Step 4

Spread mixture into prepared pan. Bake for about 35 minutes. Stand 5 minutes before turning on to wire rack to cool. Spread cold cake with icing, sprinkle with extra coconut if desired.

Step 5

To make caramel icing, melt butter in saucepan, add sugar and stir constantly over heat without boiling for about 2 minutes. Stir in milk then gradually stir in sifted icing sugar. Stir until smooth.