Lightly toast the coconut in a saucepan over medium low heat, stirring often. One toasted let cool completely
Combine the flour, baking powder, baking soda and salt in a small bowl, whisking to mix well and set aside.
In a stand mixer or large bowl mix together the butter and sugars until light and fluffy, about 3-4 minutes. Add in the eggs one at a time, mixing well between each then mix in the extracts. Add in the flour mixture and coconut milk and mix until just combined, no streaks of flour seen. Fold in the toasted coconut and chocolate chips. Chill for one hour up to overnight - optional but not necessary.
When ready to bake preheat oven to 350 Deg F. Place rounded tablespoonfuls of dough two inches apart on a baking sheet lined with parchment or a silicon bake mat. Bake for 8-10 min or until edges start to turn light brown and middles are still a little soft. Cool for one minute on baking sheet then transfer immediately to wire cooling rack.
Keep in an airtight container at room temperature up to 3 days or freeze up to 3 months. Thats if they last that long without getting eaten!!