Pre-heat the oven to 325F/163C, place the coconut in one layer on a baking sheet, bake in the oven for 5 minutes until lightly golden, move immediately to a clean bowl to cool.
In a large bowl or stand mixing bowl beat the butter, vanilla and sugar for 2 minutes or until creamy, sift in the flour and salt, beat on low just to almost combine, add the cooled coconut and mix just to combine, do not over mix.
Form into a log (9½-10 inches/ 24 -25 cm long, wrap in plastic wrap and refrigerate for one hour.
Pre-heat oven to 320F/160C.
Slice the log into 20 slices, place on a parchment paper lined cookie sheet, sprinkle with coconut (not toasted). Bake the cookies for 10-15 minutes or until very lightly golden around the edges. Let cool on the cookie sheet for 10-15 minutes then move to a wire rack to cool completely. Enjoy!
Notes
If the dough is too dry then add a bit more butter. Be sure to use flour with at least 11 % protein and chill the dough, this will help keep the cookies from spreading.
Make Ahead, Storage and Freezing Coconut Shortbread Cookies
Make ahead: Make the coconut shortbread up to two days in advance and keep tightly wrapped in the refrigerator until ready to bake. Store: Store baked cookies in an airtight container at room temperature up to a week or if you like chilled cookies in the refrigerator for up to 10 days. Freeze baked cookies: You can freeze the baked coconut shortbread for up to 3 months. I like to layer mine between parchment paper. Freeze unbaked cookie dough: Freeze the unbaked shortbread cookie dough for up to 3 months. I like to wrap mine tightly in plastic wrap then foil. Thaw in the refrigerator then bake according to directions.