In the bowl of a stand mixer fitted with a paddle attachment or in a medium bowl with a handheld electric mixer, beat together the butter and sugar on medium-high for about 3 minutes, until light and fluffy. Beat in the milk and vanilla extract until combined.

In a small bowl, whisk together the flour, baking powder, and salt, then switch the mixer to low and combine with the butter mixture until evenly mixed. Shape the dough into a flattened disc, wrap well and refrigerate until firm, at least 30 minutes.

While the dough is chilling, toast the coconut: Preheat the oven to 350°F (180°C) and line a baking sheet with parchment paper.

Spread the coconut in an even layer and bake, stirring frequently to prevent burning, until the coconut is evenly golden brown, 10 to 15 minutes. Transfer to a medium bowl to let cool. Leave the oven on.

Line two baking sheets with parchment and set them aside. On a floured surface, roll out the chilled dough to ⅛-inch-thick (3 mm). Using a 2-inch (5-cm) round cookie cutter, cut out as many circles as you can. (You can gather and re-roll any scraps.) Place the cookies on the prepared baking sheets about 1 inch (2½ cm) apart.

Using a ½-inch (12 mm) round cutter, cut a small circle out of the center of each cookie (these small cutouts can be gathered and rerolled into more cookies.)

Bake the cookies for 10 to 12 minutes, until very lightly golden. Transfer to a wire rack to cool completely and set your parchment-lined baking sheets aside.

In a double boiler or in a microwave-safe bowl, combine the Homemade Chewy Caramels and cream and heat very gently until melted. Pour the melted caramel into the toasted coconut and mix to combine.

In a microwave-safe bowl or double boiler, combine the chocolate and oil, and stir gently until melted.

Dip a cookie in the melted chocolate and place it on the parchment-lined baking sheet. Repeat with the remaining cookies.

Before the chocolate is set, scoop about 1 ½ tablespoon of the coconut mixture on top of the chocolate. Repeat with the remaining cookies.

Once all of the cookies are dipped and topped, drizzle the remaining chocolate over the cookies.

Let the chocolate set before serving, for at least 2 hours, or refrigerate for 30 minutes to set quicker. Serve at room temperature.

Store cookies in an airtight container at room temperature for up to 3 days.