In a medium pot over medium heat, place the panela, water and lime zest. Cook for about 15 minutes.
Add the coconut and cinnamon stick. Stir well and cook for about 30 minutes more or until the mixture is thick. Discard the cinnamon sticks.
Line a cookie sheet with parchment paper. Pour the mixture into the prepared sheet. Press the mixture evenly into the sheet. Cool for at least 2 hours before cutting into squares. Serve at room temperature.