Preheat the oven to 350 degrees.
Butter and flour muffin tins or dome shaped baking molds and set aside. Whip the egg whites in a clean bowl until stiff but not dry and place in the refrigerator while you make the rest of the batter. Cream the butter and add the sugar. Continue mixing to blend well. Add the vanilla, almond and lemon rind and mix well. Sift the flour 3 times with the baking powder then add it to the butter mixture alternately with the milk in 3 additions. Fold in the whites and pour the batter into the molds, filling about 3/4 of the way up. Bake for 20 to 25 minutes until batter is firm to the touch in the center. Let cool in the pans then turn out so the top becomes the bottom (you may need to trim them a bit so they sit flat).
Frosting: Place all of the ingredients except the vanilla in the top of a double boiler (not over the heat yet). Beat with a mixer thoroughly. Place over boiling water and beat continuously until the frosting is stiff and holds peaks. Take off the boiling water and add the vanilla, then continue to beat until cool.
Place the coconut in a bowl and add 1 drop of red or green food coloring for a pale color. Toss until food coloring is well mixed in and the coconut is the desired color. Frost the top and sides of the cakes and dip/roll in coconut to make them look like snowballs.