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1
Position racks in the upper and lower thirds of the oven; preheat to 350 degrees F. Spread 1 cup coconut flakes on a baking sheet and bake until toasted, about 3 minutes.
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2
Let cool completely.
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3
Transfer to a food processor; add the granulated sugar and pulse until finely ground.
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4
Line 2 baking sheets with parchment paper.
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5
Whisk the coconut-sugar mixture, the flour, baking powder, baking soda and salt in a bowl.
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6
Melt the coconut oil in the microwave; add to the flour mixture along with the vanilla and 1/3 cup water and mix with a wooden spoon until a stiff dough forms.
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7
Stir in the macadamia nuts and the remaining 1/2 cup coconut flakes; gently knead until the dough comes together.
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8
Divide the dough in half and shape into two 9-by-2-inch logs; place 1 log on each baking sheet.
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9
Bake, switching the pans halfway through, until the logs are firm and golden, about 25 minutes.
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10
Reduce the oven temperature to 300 degrees F.
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11
Let the logs cool 10 minutes, then transfer to a cutting board; slice diagonally with a serrated knife into 3/4-inch-thick pieces.
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12
Arrange the slices cut-side down on the baking sheets.
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13
Bake, flipping halfway through, until just golden and the centers still have a little give, 20 to 25 minutes.
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14
Let cool completely on the baking sheets.
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15
(The biscotti will crisp as they cool.)
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16
Whisk the confectioners' sugar, coconut cream and coconut extract until smooth.
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17
Dip the biscotti in the glaze; sprinkle with coarse sugar.
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18
Photograph by Levi Brown
