Preheat the oven to 325 degrees F. Spray a donut pan with cooking spray, use a paper towel to lightly spread/remove excess spray.

Combine the flour, sugar, baking powder and salt, set aside. Combine the coconut milk, egg, coconut extract, butter and oil in a second bowl. Combine the dry ingredients into the wet ingredients, stir until just combined.

Transfer the batter to a large piping bag or use a ziploc bag with one corner cut off. Pipe the batter into the donut pan, filling each donut hole about 2/3 full.

Bake the donuts for 10 minutes, or until a toothpick comes out clean. Remove from the oven and let the donuts sit in the pan for 5 minutes before moving to a wire rack.

Combine the chocolate and oil in a shallow microwave safe bowl and microwave on 60% power, stirring every 30 seconds for about 2 minutes. You do not want the chocolate to be too runny. Let the chocolate sit for a few minutes so it can thicken before you dip the donuts into the chocolate. Dip each donut into the chocolate, allowing the excess to fall off. Let the chocolate covered donuts sit for 3-4 minutes before dipping them into the coconut.

Place the shredded coconut on a baking sheet, bake at 325 degrees F for 4-6 minutes, stirring to prevent burning. Coconut can burn easily, so keep an eye on it. Remove the pan from the oven, let it cool for 5 minutes. Use your fingers to break the coconut into smaller pieces. Have the coconut ready ahead of time so the chocolate doesn’t completely set before dipping the donuts into a bowl with the toasted coconut.