Preheat the oven to 350 degrees F. Grease and flour three 9″ cake pans. Sift together the flour, baking powder and salt into a bowl. Cream the butter in an electric mixer bowl. Gradually add the sugar to the butter and beat until consistency is light. To the butter mixture, add one egg yolk at a time, beating in between additions.
Add 1/3 of the flour mixture at a time to the butter mixture, alternating with the milk. End by adding the flour mixture. Scrape down the sides of the bowl and the beater. Add the coconut and lemon rind.
In a separate bowl, beat the egg whites until stiff, but not dry. Fold the egg whites into the cake batter. Bake until a toothpick comes out clean from the center of the cakes. Cool the cakes for 10 minutes before inverting onto wire cake racks.
