Preheat the oven to 350°F (175°C) and line a baking sheet with parchment paper.

In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.

Gradually add the flour, baking powder, and salt. Mix until combined.

Stir in the milk and vanilla extract, continuing to mix until the dough forms a smooth, pliable consistency.

Roll out the dough to ¼-inch thickness on a lightly floured surface.

Use a 2-inch round cutter to cut out circles. Then, cut out the centers using a smaller cutter or bottle cap to create a ring shape.

Place the cookies onto the prepared baking sheet.

Bake for 10–12 minutes, or until the edges are lightly golden.

Transfer the cookies to a wire rack and allow them to cool completely.

Spread the shredded sweetened coconut on a baking sheet.

Toast in the oven at 350°F (175°C) for 5–7 minutes, stirring halfway through to ensure even browning.

Keep a close eye on it, as coconut can burn quickly.

In a saucepan over low heat, melt the caramels with the heavy cream and salt, stirring constantly until smooth and creamy.

Remove from heat and fold in the toasted coconut until fully coated.

Spread a layer of the caramel-coconut mixture on top of each cookie, pressing gently to adhere.

Let the topping set for about 10 minutes.

Melt the semi-sweet chocolate chips in the microwave in 30-second intervals, stirring after each, until smooth.

Dip the bottom of each cookie into the melted chocolate and place them back onto the parchment paper-lined baking sheet.

Use a piping bag or spoon to drizzle chocolate over the tops of the cookies.

Refrigerate the cookies for 10–15 minutes, or until the chocolate is fully set.

Once set, serve immediately or store them in an airtight container.