In a large bowl, beat together butter, brown sugar, vanilla and egg.
In a separate bowl, mix flour, salt, baking powder and 1 1/2 cups coconut.
Combine dry ingredients with the wet ingredients. Spread mixture in a greased 9X13 pan. Bake at 350 for 15 minutes.
Melt half of the caramels and 1 Tbsp milk in a glass bowl in the microwave in 30-second intervals, stirring in between each interval until smooth and completely melted. Drizzle the melted caramel over the crust and return to the oven for 10-12 minutes until medium brown and caramel is bubbly.
Sprinkle bars with chocolate chips, let sit for about 2 minutes and then spread the chocolate evenly over the bars. Cool completely.
Melt the remaining caramel with the remaining 1 Tbsp milk and drizzle over the chocolate. Garnish with the remaining coconut. Enjoy!