Toast coconut flakes on the stove-top by heating them in a pan over medium high heat for about 5 minutes or until lightly browned and fragrant. Stir frequently.
Add the sweetened condensed milk, whipped topping and lime juice to a large bowl and stir until well combined.
Fold in most of the coconut flakes, reserving about 1 Tablespoon to sprinkle over the top of the dip.
Chill dip in the refrigerator for about 15 minutes prior to serving.
Serve with graham crackers or fruit.