Step 1: Preheat your oven to 325°F (165°C). Spread the shredded coconut on a baking sheet and toast for 5-7 minutes until golden brown, stirring occasionally. Let cool completely.
Step 2: In a large bowl or stand mixer, cream together the softened butter and confectioners’ sugar until light and fluffy.
Step 3: Add the salt and vanilla extract to the butter mixture and mix until well combined.
Step 4: Gradually add the all-purpose flour, mixing on low speed until a dough begins to form. Fold in the cooled toasted coconut by hand.
Step 5: Turn the dough onto a sheet of parchment paper and roll out to 1/2-inch thickness. Cut into rectangles or rounds using a cookie cutter.
Step 6: Place the cut shapes onto a lined baking sheet and chill in the refrigerator for at least 30 minutes.
Step 7: Bake for 20-25 minutes, or until the edges are just barely beginning to turn golden. Allow to cool on the baking sheet for 10 minutes before transferring to a wire rack.