• Pre-heat oven to 325 degrees and spray a donut pan with cooking spray.
• In a large bowl, whisk together flour, sugar, baking powder, and salt.
• In a separate small bowl, lightly whisk eggs. Whisk milk, coconut extract, and melted coconut oil or butter into the eggs, until combined.
• Stir the wet ingredients into the dry ingredients, taking care not to over-mix. Gently fold in ½ cup coconut.
• Fill each cavity in donut pan about ¾ of the way with batter. I recommend putting the batter in a plastic bag and cutting off the corner to pipe it into the pan (you can also use a pastry bag).
• Bake donuts for 8-10 minutes, until they're light and springy to the touch. Let cool in the pan for a few minutes and then remove to cool completely on wire rack. If you only have a 6-cavity donut pan, repeat with remaining batter.
• Put the remaining ¼ cup coconut on a small baking sheet and toast for a few minutes, until it's lightly golden, stirring after a minute. Keep a close eye on the coconut as it will burn quickly. If you prefer, you can put it in the oven at 325 degrees for 5-10 minutes, checking frequently and stirring occasionally.
• Frost donuts with salted caramel icing and immediately sprinkle with toasted coconut.

Salted Caramel Icing

• In a small saucepan set over medium heat, stir together granulated sugar and water.
• Let mixture come to a simmer and let it simmer until it reaches a dark amber color (keep a close watch on the mixture as it can burn quickly).
• Remove from heat and immediately stir in heavy cream, vanilla extract, and salt, until the mixture is smooth. Remove to separate bowl and let cool completely.
• In the bowl of a stand mixer with paddle attachment (or in a large mixing bowl with an hand mixer), beat butter on medium speed until it's light and fluffy. Lower mixer speed and beat in confectioner's sugar, until fully combined.
• Beat milk into mixture and pour in cooled caramel sauce. Beat until frosting is light and airy.