How to set up lime?

With some help I received info that when I get this error failing to compile a project for neko

Called from ? line 1
Called from CommandLineTools.hx line 1904
Called from CommandLineTools.hx line 22
Called from CommandLineTools.hx line 124
Called from CommandLineTools.hx line 1589
Called from lime/tools/ConfigHelper.hx line 17
Called from lime/tools/ConfigHelper.hx line 71
Called from hxp/System.hx line 653
Called from /Users/runner/hostedtoolcache/haxe/4.2.5/x64/std/neko/_std/sys/FileSystem.hx line 82
Uncaught exception - std@sys_create_dir
Build halted with errors.

Is because cannot create a lime folder. If I set environment variable LIME_CONFIG = (custom\directory\.lime) or …(custom\directory\.lime\config.xml) compile error says “invalid xml data” of course if there is empty XML or no XML file in there, so what should be there for it to target correctly?

I use Flash Develop 5.3.4 and I dont recall having to set up lime like that to be able to compile projects.