Step 1
In a large mixing bowl, beat together the softened butter, shortening, and brown sugar until light and fluffy.

Step 2
Beat in the eggs one at a time. Gradually mix in the water and vanilla extract until fully combined.

Step 3
In a separate bowl, whisk together the flour, baking powder, baking soda, and salt. Gradually add to the creamed mixture, mixing well after each addition.

Step 4
Stir in the shredded coconut until evenly distributed throughout the dough.

Step 5
Cover the dough and refrigerate for 2–4 hours, until firm enough to shape.

Step 6
Preheat oven to 400°F (200°C). Shape chilled dough into 1-inch balls. Place them 2 inches apart on greased or parchment-lined baking sheets.

Step 7
Flatten each ball into a 2½ x 1-inch rectangle using your fingers. Press gently with a floured fork lengthwise to create decorative lines.

Step 8
Bake for 8–10 minutes, or until edges are lightly golden. Let cool for 2 minutes on the pan before transferring to wire racks to cool completely.