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A large sheet pan with sides, about 13 by 17 inches
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Parchment or waxed paper
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A 2-inch (approximately) round biscuit or cookie cutter
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Heat the oven to 350 degrees F. Grease a sheet pan and line the bottom and sides with parchment or waxed paper.
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Sift together the 3 cups sugar, flour, cocoa, baking powder, baking soda, and salt.
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Transfer to a mixer fitted with a whisk attachment (or use a hand mixer) and blend briefly.
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Whisk together the eggs, milk, oil, and vanilla extract in a medium bowl.
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Add to the dry ingredients and mix at low speed for 5 minutes.
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Gradually add the hot water, mixing at low speed just until combined.
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The batter will be quite thin.
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Pour the batter into the pan.
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Bake until a tester inserted in the center of the cake comes out clean (a few crumbs are okay) and the center feels firm to the touch, 25 to 30 minutes.
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Let cool in the pan.
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Chill, covered, until ready to cut the cake.
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Meanwhile, make the caramel: Pour the 1 1/4 cups sugar into the center of a deep saucepan.
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Carefully pour the water around the walls of the pan, trying not to splash any sugar onto the walls.
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Do not stir; gently draw your finger twice through the center of the sugar, making a cross, to moisten it.
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Over high heat, bring to a full boil and cook without stirring, swirling the pan occasionally to even out the color, until medium caramel in color, 5 to 10 minutes.
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Immediately turn off the heat and use a wooden spoon to slowly and carefully stir in the cream (it will bubble up and may splatter).
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Stir in the macadamia and coconut.
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Set aside.
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When ready to serve, cut rounds of the chilled cake with a biscuit or cookie cutter, 2 to 3 inches in diameter.
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If the cake seems to be sticking, dip your cutter in cocoa powder between cuts.
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If the sauce has cooled, rewarm it over low heat (or in a microwave) until softened.
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Place a cake on each plate, and drizzle with caramel sauce.
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Place another round of cake on top and drizzle lightly with more caramel sauce.
