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Preheat oven to 350 degrees.
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Grease 2 baking sheets.
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Combine the condensed milk, Key lime juice, and flour in a medium bowl.
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Stir in the grated coconut and then the sugar.
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If using sweetened coconut, taste the mixture before adding the sugar.
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Add the sugar only if you think it is necessary.
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The cookie should have a tangy flavor from the Key lime juice.
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Drop teaspoons of the mixture onto a baking sheet, leaving 2 inches between between each cookie.
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They will spread while baking.
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Bake for 25 minutes until they just start to turn golden.
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Remove from the pan to a rack to cool.
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Store in an airtight container.