Use 1 1/2 cups milk with butter; 2 cups milk with vegetable shortening. Has not been tried with margarine.
Measure sifted flour, add baking powder and salt, and sift together 3 times. Beat egg whites until foamy. Add 1/2 cup sugar gradually and continue beating until meringue will hold up in stiff peaks.
Cream shortening, add 2 cups sugar gradually and cream together until light and fluffy. Add flour mixture alternately with milk, a small amount at a time, beating with each addition until smooth. Add vanilla. Then add meringue and beat thoroughly into batter.
Pour batter into 3 round 9-inch layer pans which have been lined on bottoms with paper. Bake in moderate oven, 375 degrees, 20-25 minutes. Cool layers. Spread 2 layers with lemon filling and cover top of third layer and sides of cake generously with fluffy seven-minute icing. While frosting is still soft, sprinkle liberally with flaked coconut.