Preheat oven to 325°F (160°C). Spread the shredded coconut in a single layer on a baking sheet. Toast for 5-7 minutes, stirring once or twice, until golden brown. Watch carefully as it can burn quickly. Let cool completely.

In a small saucepan or microwave-safe bowl, melt the unsalted butter. Set aside to cool slightly.

In a large mixing bowl, combine the slightly cooled melted butter with granulated sugar and packed light brown sugar. Beat with an electric mixer on medium speed for 2-3 minutes until smooth and well combined.

Beat in the eggs one at a time, mixing well after each addition. Stir in the vanilla extract until just combined.

In a separate medium bowl, whisk together the all-purpose flour, baking soda, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing on low speed until just combined. Be careful not to overmix. The dough will be thick.

Fold in the cooled toasted coconut and the chopped caramel candies using a rubber spatula until evenly distributed.

Cover the bowl with plastic wrap and refrigerate the cookie dough for at least 30 minutes. This helps prevent spreading and results in a thicker cookie.

While the dough chills, preheat your oven to 375°F (190°C). Line two large baking sheets with parchment paper.

Scoop rounded tablespoons of dough (or use a 1.5-2 oz cookie scoop) and place them about 2 inches apart on the prepared baking sheets.

Bake for 10-12 minutes, or until the edges are golden brown and the centers are still slightly soft. The caramel might melt and spread slightly, creating delicious chewy pockets.

Let the cookies cool on the baking sheets for 5 minutes before transferring them to a wire rack to cool completely.