Preheat your oven to 350°F (175°C). In a mixing bowl, whisk together the all-purpose flour, baking powder, and salt. In another bowl, cream together the softened butter and granulated sugar until light and fluffy. Stir in the vanilla extract and half and half until combined.
Gradually add the dry ingredients to the wet mixture, stirring until a dough forms. Roll the dough out on a lightly floured surface to about ¼ inch thick. Use a round cookie cutter to cut out circles, and then use a smaller cutter to create a hole in the center of each cookie.
Place the cookies on a parchment-lined baking sheet. Bake for 10-12 minutes or until the edges are lightly golden. Allow the cookies to cool completely on a wire rack.
While the cookies are cooling, spread the shredded coconut on a baking sheet and toast it in the oven for about 5-7 minutes, stirring occasionally to ensure an even golden color. Keep a close eye on it to prevent burning!
In a saucepan over low heat, combine the caramels and evaporated milk. Stir until the caramels are completely melted and the mixture is smooth. Remove from heat and fold in the toasted coconut.
Using a spoon, drop a generous amount of the caramel-coconut mixture onto each cookie, spreading it evenly. Allow the cookies to set while you prepare the chocolate.
In a double boiler or microwave-safe bowl, melt the dark chocolate melting wafers along with the vegetable oil or shortening. Stir until smooth and fully melted.
Dip the bottom of each cookie into the melted chocolate, ensuring it’s fully coated. Place the cookies on a wire rack to let the excess chocolate drip off. Once set, use a fork to drizzle chocolate over the caramel topping for that signature look.