Ingredients:

* 3 cups all-purpose flour
* 1/2 cup confectioners’ sugar
* 1 teaspoon baking powder
* 1/4 teaspoon salt
* 1 cup butter
* 7 tablespoons ice water
* 2 tablespoons milk
* 25 individually wrapped caramels, unwrapped
* 1/2 cup flaked coconut
* 1 egg
* 1 tablespoon water

Methods:

1. In a large bowl, stir together the flour, confectioners’ sugar, baking powder, and salt. Cut in the butter with a pastry blender or by hand until mixture forms pea sized lumps. Add ice water, 1 tablespoon at a time; tossing the mixture with a fork until dough comes together. Divide dough into 2 pieces, cover, and refrigerate for at least 1 hour.
2. In a small saucepan, combine the caramels and milk over low heat, stirring constantly. Stir in the coconut , remove from heat, and allow to cool.
3. Preheat oven to 400 degrees F (200 degrees C). Grease cookie sheets.
4. On a lightly floured surface, roll out dough to 1/8 inch thickness. Cut out circles with a 3 inch round cookie cutter. Beat the egg and 1 tablespoon of water together in a cup. Moisten the edge of the cookie round with the egg mixture, and place 1/2 teaspoon of the caramel mixture in the center. Fold the circle over in half and press the edges with a fork to seal.
5. Place the cookies onto the prepared baking sheet and brush the tops with the egg mixture. With a knife cut three slits across the top of each cookie. Bake 15 to 20 minutes, until golden brown. Remove cookies to wire racks to cool. Store at room temperature.

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