Preheat oven to 350°F (175°C). Line a baking sheet with parchment paper.

In a mixing bowl, cream together butter and sugar until light and fluffy.

Add flour, salt, milk, and vanilla extract. Mix until dough forms.

Roll out dough to about ¼ inch thick and cut out circles with a small hole in the center.

Place on the baking sheet and bake for 10-12 minutes, or until lightly golden. Let cool.

Toast shredded coconut in a dry pan over medium heat until golden. Set aside.

In a microwave-safe bowl, melt caramels with heavy cream in 30-second increments, stirring until smooth.

Stir in toasted coconut, then spread the mixture over cooled cookies.

Dip the bottoms of cookies in melted chocolate, then drizzle remaining chocolate over the tops.

Let set on parchment paper until chocolate hardens.