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Preheat the oven to 350°F.
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To make the cookies: In a medium-sized bowl, beat together the butter and salt until soft and fluffy.
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Mix in the confectioners' or glazing sugar, coconut milk powder, and coconut flavor. Add the flour and toasted coconut, mixing until well combined.
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Form the dough into 1” balls; a teaspoon cookie scoop is a real time-saver, and your cookies will be nice and uniform. Place the balls on an ungreased baking sheet.
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Bake the cookies for 12 to 15 minutes. They should be very light brown on the bottom, and feel set on top.
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Let the cookies cool on the baking sheets for 3 minutes before disturbing; they're very fragile when they first come out of the oven.
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Sift the confectioners' or glazing sugar with the coconut milk powder and place in a shallow pan.
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Roll the warm cookies in the sugar/coconut coating.
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Let the cookies cool completely, then re-roll in the sugar.
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When completely cool, store them in airtight containers for 1 week, or freeze for longer storage.
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Optional glaze and garnish: Instead of rolling cookies in sugar, you can dip completely cooled cookies in glaze, then roll in flaked coconut.
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To make the glaze: Sift together the sugar and coconut milk powder. Stir in the flavor and 8 tablespoons milk. Add the remaining milk a bit at a time, stirring until the glaze is smooth and the thickness of honey.
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Dip each cookie in the glaze, roll in the coconut, then put on a cooling rack to harden. Or skip the flaked coconut, and simply dip each cookie in glaze.