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1
Place flour, powdered sugar, baking powder and salt in large bowl; stir to combine.
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2
Cut butter into flour mixture with pastry blender or 2 knives until mixture forms pea-sized pieces.
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3
Add water, 1 tablespoon at a time; toss with fork until mixture holds together.
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4
Divide dough in half; cover and refrigerate 30 minutes or until firm.
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5
Meanwhile, melt caramels and milk in medium saucepan over low heat, stirring constantly; stir in coconut.
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6
Remove from heat; cool.
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7
Working with 1 portion at a time, roll out dough on lightly floured surface to 1/8-inch thickness.
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8
Cut dough with 3-inch round cookie cutter.
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9
Reroll trimmings and cut out more cookies.
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10
Preheat oven to 400F.
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11
Grease cookie sheets; set aside.
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12
Beat egg and water in cup.
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13
Place 1/2 teaspoon caramel mixture in center of each dough round.
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14
Moisten edge of dough round with egg mixture.
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15
Fold dough in half; press edges firmly to seal in filling.
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16
Press edges with fork.
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17
Place crescents on prepared cookie sheets; brush with egg mixture.
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18
Cut 3 slashes across top of each cookie with tip of knife.
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19
Bake 15 to 20 minutes or until golden brown.
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20
Remove cookies to wire racks; cool completely.
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21
Store tightly covered at room temperature.
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22
Note: These cookies do not freeze well.
