Grease and line a 19cm square cake tin.
Sift the icing sugar into a large mixing bowl and stir in the coconut. Pour in the condensed milk and lemon juice and mix with a wooden spoon until thoroughly combined – the mixture will be very stiff. Spoon half the mixture into the prepared cake tin and flatten with your knuckles to fill the base of the tin. Use the back of a spoon to level the surface.
Knead a few drops of food colouring into the remaining mixture, working in a little extra icing sugar if it becomes sticky. Flatten to a rough 18cm square then place on top of the white mixture in the tin. Use the back of the spoon to smooth the mixture down firmly and to level the surface.
Chill in the fridge for 4 hours until firmly set. Use the baking paper lining to lift the coconut ice from the tin. Cut into 36 small squares.
Cook't tip: to keep the coconut ice squares, wrap them in baking paper and put in an airtight container.