Preheat oven to 350°F. Grease a donut baking pan with nonstick spray.

In a medium bowl, mix together flour, sugar, baking powder, and salt. Whisk in milk, egg, and coconut oil until blended.

Divide batter among donut pan wells. Bake for 15 minutes, until risen and golden.

Let cool in pan 1 minute, then remove from pan to a wire rack. Let cool completely.

Meanwhile, pour coconut flakes into a food processor and pulse until finely chopped. Pour into a shallow bowl.

In another shallow bowl, whisk together powdered sugar and 2 tablespoons milk until a glaze forms.

Dip donuts into the glaze, then into the coconut. Let set before serving.