Preheat oven to 350ยบ F.
Using an electric mixer, beat the butter and sugar together until light and creamy.
Add the eggs, vanilla extract and coconut extract and mix until well combined.
In a medium bowl, whisk together the flour, baking powder and salt.
Add the flour mixture to the wet mixture and mix on low until combined, scraping the bowl as needed.
Fold in the coconut and chopped macadamia nuts.
Divide the dough in half and shape each into a ball.
Gently roll to shape each ball into a log about 14 inches long and 1 1/2 inches wide.
Place the logs on a parchment lined baking sheet leaving 3 - 4 inches between each log to allow the dough to spread as it cooks.
Gently press the sides and tops of each log and then bake in oven for 25 minutes.
Remove from oven and allow to cook for 20 - 30 minutes.
Using a sharp knife, cut 1/2 diagonal slices. Cut in one motion rather than sawing to reduce breakage.
Place the biscotti, cut side up, on the baking sheet and bake for an additional 12 - 15 minutes, until dry and lightly golden.
The biscotti will dry as they cool.
Store in an air tight container at room temp.