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1
Preheat oven to 350 F. Line two baking trays with parchment paper.
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2
In the bowl of a stand mixer with a paddle attachment, combine flour, brown sugar, baking powder, baking soda, nutmeg, and salt. Add butter, and mix until butter cubes are the size of small peas. Add toasted coconut, chocolate chips, and toffee bits, if desired and slowly mix them in. Add vanilla and milk. Mix until just combined. The dough will be thick, but will hold together when lightly pressed between fingers.
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3
Scoop dough using a standard ice cream scoop onto the lined sheet trays, no more than 8 to a tray. Bake for 25 minutes, or until scones are golden brown and very firm to the touch.
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4
Remove pans from the oven and set on a rack. Allow scones to cool to room temperature.
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5
Melt chocolate chips over a double boiler or in the microwave. If you heat it in the microwave just make sure to only heat for 30 seconds at a time and stir before heating for additional increments. Stop heating once it's almost smooth. Allow to cool slightly.
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6
In a small bowl, combine confectioners' sugar, caramel sauce and milk. The frosting should be very thick. Scoop 1 tablespoon of frosting onto each scone. Spread slightly over the top. Immediately sprinkle with toasted coconut. Drizzle liberally with melted chocolate.
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7
Allow chocolate to set before serving or storing. Store in an airtight container in a single layer at room temperature for up to 3 days.
