Toast shredded coconut in a skillet until golden and fragrant, then cool.Cream butter and powdered sugar until light and fluffy, then mix in vanilla.Combine flour and salt, then add gradually to butter mixture.Fold in toasted coconut evenly.Shape dough into a log or flatten and chill for 30–60 minutes.Slice or cut dough into shapes and place on baking sheet.Bake at 325°F (165°C) for 12–15 minutes until edges are lightly golden.