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Adjust oven racks to upper & lower -middle positions & heat oven to 325.
Line a large rimmed baking sheet with parchment paper.
Spread coconut evenly on baking sheet.
Once oven is preheated place coconut in oven. Bake for 10-20 minutes stirring every 5 minutes for even toasting.
Remove from oven when light brown. Do NOT burn. Allow to cool completely before adding to dough.
Re-line cookie sheets with parchment paper.
Whisk dry ingredients together; set aside.
With electric mixer, or by hand mix butter and cream cheese together with a mixer until smooth.
Add sugars and beat until thoroughly combined.
Beat in vanilla until combined.
Add dry ingredients & beat at low speed just until combined.
Stir in cooled coconut.
Chill dough overnight.
When ready to bake cookies preheat oven to 350 degrees.
Drop dough onto parchment lined baking sheets and bake for 12-14 minutes or until edges are set and bottoms are light brown.
Cool cookies on sheets until able to lift without breaking and place on wire rack to cool.