Take butter into the mixing bowl. Make sure your butter is at room temperature. Cream it for 1 minute. Now add sugar and cream until well combined.
Add milk and vanilla extract. Mix until well combined. Slowly add all-purpose flour and coconut powder. Make dough. Cover the dough then refrigerate.
Dust your surface with flour. Roll the dough in a rectangle shape. Take a palette knife and get the edges straight. Roll the dough into ⅓ inch thickness.
Sprinkle some coconut powder and gently press it with the rolling pin. Cut into squares using a pizza cutter or knife.
Line the cookie pan with parchment paper and arranges all the cookies.