Preheat the oven to 350 degrees. Line a couple baking sheets with parchment and set aside.
In the bowl of a stand mixer, combine the softened butter and sugar. Cream until smooth.
Add the vanilla and milk. Mix until combined.
Add in the flour, baking powder and salt. Mix thoroughly, scraping down the sides often.
Transfer the dough to a lightly floured work surface. Roll the dough into a ¼ inch thick.
Cut out 2 ½ inch circles and transfer to a baking sheet. Then cut a 1 inch circle from the center of each round cookie.
Repeat with the remaining dough, rerolling as many times as possible.
Transfer the cookies to the freezer for about 10 minutes.
Bake in the preheated oven for approximately 10 minutes or until set. Do not overbake. Allow to cool completely before assembly.
For the topping
Toast the coconut in the preheated oven for about 10 minutes, stirring several times throughout the process to prevent burning. Watch closely. Remove from the oven and allow to cool.
Place the caramels and evaporated milk in a large frying pan. Heat over low heat and stir frequently for approximately 10 minutes. Caramel should be melted and smooth.
Using a spatula or knife, spread a layer of caramel over the top of each cooled cookie.
Add the toasted coconut to the remaining caramel. Stir until well combined.
Allow to cool slightly. Using gloved hands, place about a tablespoon worth of the coconut caramel on top of each cookie, shaping it to the cookie. As the caramel cools, it will harden. Work quickly to finish the remaining cookies.
Melt the chocolate and vegetable oil in the microwave until smooth.
Dip the bottoms of the cookies in the melted chocolate and place on a piece of parchment to set.
Transfer the rest of the melted chocolate to a piping bag. Drizzle over the cookies.