Preheat Oven & Prepare Pan: Preheat the oven to 356ºF (180ºC). Line a 9 inch x 5 inch rectangle/loaf baking tin with parchment paper NOTE: Alternatively, if you have a non-stick pan, liberally grease it with butter and dust it with a light layer of flour. This will leave your finished loaf with smooth sides. Set aside.
Melt Butter Mixture: In a small saucepan, combine the butter, milk, and lemon zest. Warm over low heat until the butter has completely melted, stirring occasionally to prevent boiling. Remove from heat and set aside.
Mix Dry Ingredients: In a large mixing bowl, sift together the flour and baking powder. Add the coconut and sugar and whisk to combine thoroughly.
Combine Wet and Dry Mixtures: Pour the melted butter mixture and the beaten eggs into the dry ingredients. Using a rubber spatula, gently fold just until incorporated, ensuring all flour is incorporated without over-mixing.
Add Blueberries: Gently fold the blueberries into the batter to distribute evenly.
Transfer Batter: Transfer the batter to the prepared loaf tin, smoothing the top out evenly.
Bake: Bake for 40-45 minutes or until a skewer inserted into the center comes out clean or with a few moist crumbs.
Cool: Remove from the oven and allow to cool in the tin for 15 minutes, then turn out onto a wire rack to cool completely.
Prepare Lemon Icing: In a medium size mixing bowl, sift in the powdered sugar. Pour in the lemon juice, and whisk until smooth.
Ice the Loaf: Once the loaf has cooled, drizzle with the lemon icing and spread evenly. Top with the fresh blueberries. Set aside for 15-30 minutes until the icing has set. Enjoy!