Makes 16 cookies
1 cup butter (2 sticks)
½ cup sugar
1 egg yolk
1 teaspoon vanilla extract
2 cups all purpose flour, sifted
3 cups shredded coconut
2 cups caramel bits
2 tablespoons milk
¼ teaspoon salt
1 cup chocolate chunks
Using a stand or hand mixer on medium speed, cream the butter and sugar with a pinch of salt until very light, about 5 minutes. Beat in yolk and vanilla until smooth.
Using a wooden spoon, fold in sifted flour. Divide dough in half and place it between two pieces of parchment paper. Roll until ¼ inch thick.
Preheat oven to 350 degrees.
Cut out dough using desired cookie cutter. Bake cookies until slightly golden and soft, 8-10 minutes. Transfer cookies to a wire rack to cool completely. Keep oven on.
Place shredded coconut on a baking sheet and bake for 5 minutes, or until golden brown. Melt caramel bits on a double boiler until smooth, about 2 minutes. Stir coconut into caramel. Melt chocolate on a double boiler until smooth.
Dip the top portion of each cookie into melted chocolate and place onto the wire rack. Press a spoonful of caramel coconut mixture on the top of each cookie, then drizzle chocolate over the top of each cookie.