Combine the yeast, sugar, honey and milk then whisk until the yeast is dissolved. Cover bowl and stand in a warm place about 10 minutes or until the mixture is frothy.
Sift the flour into a bowl then rub in the butter. Stir in the yeast mixture, water, vanilla, egg and mixed fruit, lightly kneading until dough has doubled in size.
Turn the dough onto a floured surface and knead for 5 minutes or until smooth. Divide into 2 equal portions then knead gently into 2 round buns. Place the buns on a greased tray about 5cm apart and cover with plastic wrap. Stand in a warm place for about 10 minutes or until buns are well risen.
In a microwave proof bowl combine the jam and water until the jam is soft and can be well combined with the water.
Bake the London buns for 25 minutes in a preheated oven at 180 degrees C.
When the buns are cooked transfer them to a cooling rack and immediately brush with the glaze and leave to cool.
Sift the icing into a small heatproof bowl then stir in the melted butter and enough water to make a thick paste. Place the bowl in a larger bowl of hot water until the icing thins out and becomes spreadable. Spread the icing on the buns and sprinkle with coconut.