Caramel-Filled Butter Crescents

Whisk together the flour, powdered sugar, and salt in a large bowl.

Cut in the butter until mixture resembles pea-sized crumbs.

Add the water, 1 tablespoons at a time; toss with a fork until dough holds together. Divide dough in half; cover and refrigerate until firm, at least 30 minutes.

Meanwhile, melt the caramels and milk together in a saucepan over low heat, stirring constantly; stir in coconut.

Remove pan from heat; cool.

Working with 1 portion of dough at a time, roll out on a lightly floured surfact to 1/8" thickness. Cut with a 3" round smooth or scalloped cookie cutter. Gently reroll trimmings and cut to make more cookies.

Preheat oven to 400*F. Line 2 cookie sheets with parchment paper.

Beat the egg and water in a cup; set aside.

Place 1/2 teaspoons caramel mixture in the center of each cookie; moisten edges of dough with the egg mixture.

Fold dough in half; firmly press edges together to seal.

Place cookies on the prepared sheets; brush with egg wash. Cut 3 slashes across the top of each cookie with the tip of a knife.

Bake 15-20 minutes, or until golden brown. Transfer cookies to wire racks and cool completely. Store airtight at room temperature.