1 cup butter, softened
1/2 cup powdered sugar
1 tsp coconut extract
1teaspoon vanilla extract
2-1/4 cups all-purpose flour
1-1/2 tbsp grated lemon rind
1/2 tsp salt
1 cup sweetened flaked coconut, lightly toasted
1-1/2 cups powdered sugar
Toast coconut: Place flaked coconut in a 1-cup measure. Microwave uncovered, on 100% power till light brown, stirring every 20 seconds. Allow 1-1/2 to 2 minutes.
Beat butter at medium speed with an electric mixer until creamy; gradually add 1/2 cup powdered sugar and extracts, beating well. Add flour, lemon rind, and salt, beating until combined. Stir in coconut. Cover and chill dough 30 minutes.
Shape dough into generous 1" balls; place 1" apart on parchment paper-lined baking sheets. Bake at 350° for 15 to 20 minutes or until golden on bottom, but pale on top. Transfer cookies to wire racks to cool 5 minutes.
Place powdered sugar in a bowl, and roll warm cookies, coating well. Cool cookies completely on wire racks. Roll cooled cookies in powdered sugar again, coating well.