Lightly spray a 12-cup muffin tin with non-stick spray and set aside.
In a food processor, combine the lemon zest and the granulated sugar until they are well combined, and the sugar is lightly yellow and fragrant. Alternatively you can just rub the lemon zest into the sugar in a large bowl.
Add the eggs, butter, oil, milk, lemon extract, and lemon juice and mix well.
In a large bowl, whisk together the coconut, flour, baking powder, baking soda, and salt.
Make a well in this mixture and pour the wet ingredients into it. Stir until everything is just combined.
Fill the muffin cups with the batter, dividing it between the 12 cups. They will be almost full.
Sprinkle the tops with coarse sugar and more shredded coconut, if desired.
Bake for 5 minutes. Lower the oven temperature to 350 degrees F, and continue baking for another 14-17 minutes, or until a toothpick inserted in the center of a muffin comes out clean.
Allow the muffins to cool in the muffin tin for 5-10 minutes before removing to a wire rack to cool completely.
If you don’t have lemon extract, you can use vanilla instead, but we do like the extra lemon flavour that you get in the muffins with lemon extract added. They will still be lemony with vanilla instead, but it will be less noticeable, and you might want to add some extra lemon zest then.