Combine flour, baking powder and salt. Set aside.Beat egg whites at high speed until foamy. Gradually add 1/4 cup sugar, a tablespoon at a time, until stiff peaks form and sugar dissolves.
Beat egg yolks. Add sugar. Beat and add extracts and water. Add flour and beat just until well combined. Fold in egg white mixture. Spread on jelly roll pan.Bake for 10-15 minutes.
Sprinkle powdered sugar over dish towel.Invert the cake onto towel. Remove parchment paper. Roll up cake and towel together. Cool on a wire rack, seam side down.
Unroll cake and remove towel. Spread frosting mixture over the top the cake. Roll up. Spread remaining frosting over the top and sides of the cake.Sprinkle cake with remaining coconut.