Preheat oven to 375 degrees and toast coconut. (See notes below). Lightly grease two baking sheets and set aside.
In a large mixing bowl, beat butter, shortening and sugars until fluffy. Beat in eggs and extracts. Stir in sour cream.
In a separate bowl, whisk flour, salt and baking soda until well combined. Gradually add to butter mixture and mix well.
Fold in coconut. Refrigerate batter for 5 minutes. Drop by tablespoons, 2 inches apart onto prepared baking sheets
Bake 8-10 minutes until set. Remove to wire rack and cool completely.
For frosting, heat butter in a small saucepan over medium heat for 5-6 minutes until golden brown. Pour browned butter into mixing bowl and add sugar, 3-4 tablespoons of milk and extracts. Thin with more milk, if needed. Frosting will thicken as you ice the cookies. Continue to stir in additional milk as needed.
Spread a layer of frosting onto cooled cookie and dip into toasted coconut. All to stand until completely dry.
Store in an airtight container.