Make jelly according to packet instructions. Place in the fridge for about 1 1/2 hrs, or until slightly thickened (it should be like unbeaten egg white).
Preheat oven to 180C or 160C fan. Grease 2 non-stick, 12-hole, shallow patty tins (2 tbsp capacity each hole). With electric beaters, beat butter, sugar and vanilla until creamy. Add egg and beat to combine.
Sift flour over mixture and gently fold in the milk. Spoon batter into prepared tins and bake for about 8 mins, or until risen, golden brown and firm to a gentle touch. Stand in the tin for 3 mins, then turn out onto a wire rack. Cool completely.
Spread coconut on a plate. Working one at a time, dip a cake in the jelly, letting it soak in slightly. Drain off excess, then roll in coconut to coat. Place on a tray. Repeat with remaining cakes, coconut and jelly and refrigerate for 1 hr, to set.
