In the bowl of a stand mixer fitted with the paddle attachment, cream together the butter and sugar until light and fluffy.

In a separate bowl, whisk together the flour, baking powder, and salt. Gradually add the flour mixture to the creamed butter, mixing between each addition.

Add the milk and vanilla extract, blending until combined to form your dough.

Divide the dough in half, pressing it into two disks. Wrap in plastic wrap and refrigerate for about 1 hour until firm.

Preheat the oven to 350°F.

Roll each disk out onto a floured surface until 1/8-inch thick. Cut out cookies using a doughnut-shaped cookie cutter and place them on a lined baking sheet.

Bake for 10 to 12 minutes until pale golden brown. Transfer to a wire rack to cool completely.

Spread coconut flakes onto a baking sheet and toast in a 350°F oven for about 10 minutes, stirring frequently.

Melt the caramels, milk, and salt in a double-boiler until fully melted.

Mix 3/4 of the caramel with the toasted coconut.

Spread the remaining caramel on top of cooled cookies, then press some coconut mixture on each cookie.

Melt the dark chocolate and dip the cookie bottoms. Drizzle chocolate on top and allow it to harden.