Preheat oven to 350F.

In a large mixing bowl, cream together butter and sugar.

Mix in flour, baking powder and salt at a low speed, followed by the vanilla and milk, adding in the milk as needed to make the dough come together without being sticky.

Roll the dough out between pieces of wax paper to about ¼-inch thickness and use a 1 ½-inch cookie cutter to make rounds.

Place on a parchment lined baking sheet and use a knife, or the end of a wide straw, to cut a smaller center hole.

Bake cookies for 10-12 minutes, until bottoms are lightly browned and cookies are set.

Cool for a few minutes on the baking sheet then transfer to a wire rack to cool completely.

Preheat oven to 300. Spread coconut evenly on a parchment-lined baking sheet and toast 20 minutes, stirring every 5 minutes, until coconut is golden.

Unwrap the caramels and place in a large microwave-safe bowl with milk and salt. Cook on high for 3-4 minutes, stopping to stir a few times to help the caramel melt.

When smooth, fold in toasted coconut with a spatula.

Spread topping on cooled cookies, using about 2-3 tsp per cookie.

Melt chocolate in a small bowl. Heat on high in the microwave in 45 second intervals, stirring thoroughly to prevent scorching.

Dip the base of each cookie into the chocolate and place on a clean piece of parchment paper.

Drizzle finished cookies with chocolate.

Let chocolate set completely before storing in an airtight container.