In a large bowl with electric mixer, beat the butter until light and fluffy, about 1 minute.
Add the sugar and beat until well combined.
Add salt and coconut extract, and beat until combined.
Add the flour and mix until just combined. The dough might be crumbly and that's just fine!
Place shortbread dough onto piece of plastic wrap and shape into a ball.
Refrigerate for 1-2 hours.
Once dough has chilled, preheat the oven to 350 degrees F.
Place the coconut on a sheet pan and place it in the oven, giving the coconut a stir every 5 minutes or so, until it is golden brown, about 10 minutes. Watch it carefully.
On a floured surface, roll the chilled shortbread out to about an 1/8 to 1/4 inch thickness. Use a cookie cutter to cut out shapes and place the cutouts on a parchment paper lined baking sheet.
Alternately, you can roll out the dough into dough balls and place on parchment paper lined baking sheet, and pressing down slightly to flatten. Either way will work - it just depends on if you want your shortbread cookies shaped or just round.
Bake the cookies for 13-15 minutes, until edges are slightly golden.
Let the cookies cool completely.
In medium bowl, microwave chocolate chips with coconut oil in 30 second increments, stirring well after each round, until completely melted and smooth.
Then dip half of each cookie in the chocolate and then sprinkle with toasted coconut.
Place cookies on parchment or wax paper and let chocolate harden.