Preheat oven to 180°C. Grease a 12 x 2 tablespoon capacity patty pan.
Using an electric mixer, cream butter and sugar until light and fluffy. Add egg, a little at a time, beating until well combined. Using a large metal spoon, gently fold in half the flour and half the milk. Repeat with remaining flour and milk.
Spoon mixture into patty pan. Bake for 15 to 20 minutes or until a skewer inserted into the centre comes out clean. Cool cakes on a wire rack.
Stir jelly and boiling water together in a bowl until crystals are dissolved. Stir in cold water. Refrigerate for 1 hour or until cold and slightly thick.
Place coconut into a large bowl. Cut each cake in half horizontally. Sandwich halves back together using 1 teaspoon of cream. Using a slotted spoon lower cakes, 1 cake at a time, into jelly. Drain excess jelly. Toss cakes in coconut until well coated. Place onto a lined tray and refrigerate for 30 minutes or until set.
