In a large mixing bowl, mix together the dry ingredients - flour, shredded coconut, and salt. Set aside.
Place the softened butter and sugar in another bowl. Beat using a handheld or stand mixer on medium speed for about 2-3 minutes until fluffy and light in color. Add the vanilla extract and beat until combined.
Gradually fold in the dry ingredients using a rubber spatula until a dough forms. Transfer the dough to the sheet of wax paper and shape it into a rectangle about 1 inch thick. Tightly wrap and place in the refrigerator for at least 2 hours or overnight.
Preheat the oven to 325°F. Line two baking sheets with parchment paper. Set aside.
Remove the dough from the refrigerator. Using a sharp knife, slice into 1/4-inch cookies. Arrange them on the baking sheet, leaving about 1 inch of space between each cookie. Bake for about 18 minutes or until slightly golden on top and golden on the sides. Remove from the oven and let cool for 5-10 minutes. Then, transfer to a cooling rack. Enjoy!