
This toasted coconut shortbread cookie recipe transforms simple ingredients into buttery, crumbly treats with a nutty coconut flavor that's absolutely irresistible. The combination of traditional shortbread with toasted coconut creates a texture and taste experience that's both familiar and excitingly different.
I discovered this recipe during a holiday baking marathon five years ago, and it's become my signature cookie ever since. Even friends who claim they don't like coconut request these cookies regularly!
Ingredients
- All purpose flour: Provides the structure for these cookies while keeping them tender
- Unsalted butter: Gives that rich, melt in your mouth quality essential to good shortbread
- Powdered sugar: Instead of granulated, creates a more delicate texture
- Cornstarch: The secret to achieving that perfect sandy shortbread texture
- Vanilla extract: Enhances the buttery flavor and complements the coconut beautifully
- Unsweetened shredded coconut: Delivers more authentic coconut flavor than sweetened varieties
- Salt: Balances the sweetness and brings out all the flavors
Step-by-Step Instructions
- Toast the Coconut:
- In a pan over medium heat, melt the tablespoon of butter until it begins to foam. Add the shredded coconut and stir constantly for 5-7 minutes. Watch carefully as coconut can go from perfectly golden to burnt in seconds. Remove from heat immediately when done and stir in vanilla extract.
- Make the Dough:
- In a large mixing bowl, beat the cup of softened butter with an electric mixer for about 30 seconds until creamy. Add the powdered sugar and continue beating for 2-3 minutes until fluffy and lighter in color. Add vanilla and salt, mixing until incorporated. Finally, add the cornstarch and flour gradually, mixing on low speed just until the mixture comes together as a soft dough. Gently fold in the cooled toasted coconut.
- Shape and Bake:
- Form the dough into a disc, wrap in plastic wrap, and refrigerate for at least 30 minutes. Preheat your oven to 350°F and line baking sheets with parchment paper. Roll the dough to 1/4-inch thickness and cut with cookie cutters. Bake for 10-12 minutes until edges barely turn golden. Let cool on baking sheet for 5 minutes before transferring to a wire rack.

The cornstarch in this recipe is my absolute favorite ingredient trick. My grandmother taught me this technique, explaining that it prevents gluten development and creates that distinctive melt-in-your-mouth quality that makes shortbread so special. Every time I make these cookies, I think of her kitchen and how she would let me be in charge of toasting the coconut when I was just tall enough to reach the stove.
Troubleshooting Tips
If your cookies spread too much during baking, your butter was likely too warm. The dough should feel cool to the touch before rolling and cutting. Chill the cut cookies on the baking sheet for 15 minutes before baking if needed. Coconut can burn quickly when toasting—start fresh if burned. For crumbly cookies, you may have used too much flour. Measure carefully using the spoon-and-level method.
Flavor Variations
Try dipping half of each baked cookie in melted dark chocolate for an indulgent twist. Or add 1 teaspoon of lime zest to the dough and top with a simple lime glaze for a tropical version. Add almond extract and press a whole almond into the center for a holiday version, or add food coloring to shape festive wreaths.
Serving Suggestions
These shortbread cookies pair beautifully with afternoon tea like Earl Grey or jasmine green tea. For dessert, serve alongside vanilla ice cream drizzled with caramel sauce for a simple, impressive treat.

These buttery delights are a testament to the magic of simple ingredients done right.
Frequently Asked Questions
- → How do I know when my coconut is properly toasted?
Your coconut is properly toasted when it turns a golden brown color and gives off a nutty aroma. This typically takes 5-7 minutes over medium heat while stirring frequently. Watch it carefully as coconut can burn quickly once it starts to color.
- → Can I use sweetened coconut instead of unsweetened?
Yes, you can use sweetened coconut, but the cookies will be sweeter. Consider reducing the powdered sugar by 1-2 tablespoons to compensate for the added sweetness of the coconut.
- → Why does the dough need to chill before baking?
Chilling the dough for 30 minutes allows the butter to firm up, which prevents the cookies from spreading too much during baking. It also helps the shortbread maintain its characteristic texture and makes the dough easier to roll and cut.
- → Can I freeze these cookies?
Yes! You can freeze the baked cookies in an airtight container for up to 3 months. Alternatively, freeze the dough (either in a log or already cut into shapes) and bake from frozen, adding 2-3 minutes to the baking time.
- → What's the purpose of cornstarch in shortbread?
Cornstarch gives shortbread its signature tender, melt-in-your-mouth texture. It contains no gluten, so it helps create a more delicate crumb than using all-purpose flour alone would provide.
- → How should I store these cookies?
Store in an airtight container at room temperature for up to one week. The flavor actually improves slightly after a day as the coconut flavor permeates the cookie.