Preheat your oven to 350°F (175°C) and line two baking sheets with parchment paper.

In a bowl, beat the softened butter, sugar, and brown sugar together until fluffy.

Add the vanilla extract and stir until blended. In a separate bowl, whisk the flour, baking soda, and salt together. Gradually add this dry mixture to the butter blend until well combined.

Roll the dough into small balls, about 1 tablespoon each, and place them on the prepared baking sheets with about 2 inches apart. Create a small hole in the center of each ball.

Pop the cookie trays into the preheated oven and bake for 10-12 minutes or until golden. Rotate your trays halfway through for even baking.

While the cookies cool, toast the shredded coconut for about 5-7 minutes in the oven, stirring occasionally until lightly brown.

In a saucepan over low heat, combine the caramel bits and milk, stirring until melted and smooth. Mix in the toasted coconut until fully combined.

Spoon the coconut-caramel mixture onto the cooled cookies.

Melt the chopped chocolate in the microwave and drizzle or dip the bottoms of the cookies into the melted chocolate.

Let the cookies cool on a wire rack until the chocolate hardens. Enjoy with a cup of tea or coffee!