Combine 1 cup flour and ¼ teaspoon salt in a bowl and set aside.
Make the powdered sugar coating. Add ¼ cup confectioners’ sugar and ¼ cup sweetened flaked coconut to the food processor. Process until the coconut flakes are finely ground and powdery. Set aside.
In a food processor, combine ½ cup confectioners’ sugar, ⅓ cup chopped walnuts or pecans, and ¼ cup flaked coconut. Process until the walnuts or pecans are finely ground, 15-20 seconds.
In a separate bowl, add the butter and beat until creamy with a mixer, approximately 1 minute on a medium-low speed. Add the ground walnut mixture and beat until well blended, approximately 1 minute on a medium-low speed.
Add in 1 teaspoon coconut extract and the flour mixture, beating just until combined. The resulting dough should be crumbly in appearance, like pebbles.
Pour the dough onto a large piece of plastic wrap and form into a ball, making sure it’s covered on all sides. Chill until firm, around 2-3 hours.
When the dough has chilled and firmed up, remove it from the refrigerator and let sit at room temperature until it softens up a bit, around 45 minutes.
Preheat the oven to 350°F. Using a cookie scoop, scoop the dough into even sizes. Optional: roll each piece between your palms to form a ball. I leave mine with a flat bottom.
Very lightly spray a baking sheet with cooking spray. Arrange the balls 1-1 ½ inches apart on baking sheets - they don't need a lot of room because they don’t spread out as they bake.
Bake until the edges of the cookies barely begin to brown, 12 to 14 minutes (13 minutes is the sweet spot in my Ninja Foodi oven).
Let the cookies cool on the baking sheets for around 5-7 minutes.
Roll each cookie in the confectioners’ sugar and coconut mixture while still slightly warm. Repeat until all the cookies are coated.