Preheat the oven to 325°F. Line a 7×13 inch baking pan with parchment paper. Make sure there is enough overhang to help lift the baked shortbread out of the pan in step 5.
In a food processor, pulse the shredded coconut until broken down a little. You just want to chop it down some so there are no big pieces.
Add the granulated sugar to a large mixing bowl. Using your hands, massage the lime zest into it to release the citrus flavor. Add the butter and coconut oil and using a mixer (handheld or stand) fitted with a paddle attachment, beat on medium speed until creamy, about 2 minutes. Add the vanilla extract, coconut extract, and salt and beat on medium speed until combined, about 1 minute. Scrape down the sides with a spatula and add the cornstarch and flour. Beat on low speed for 30 seconds, and then turn it up to medium speed for 1 minute until a thick dough forms. Fold in the shredded coconut so it's evenly combined.
Press the dough into the previously prepared baking dish. Try and get it as compact and even as possible. Poke the top of dough with a fork all over to prevent air bubbles. Bake for 42-45 minutes or until slightly browned on the sides. Oven times may vary depending on what kind of oven you're using. Allow the shortbread to cool in the pan set on a wire cooling rack for at least an hour or until cooled completely. Then lift it out of the pan and cut into squares or rectangles (Any size will work!)
Shortbread stays fresh stored at room temperature for up to 1 week