Cream together sugar, butter and vanilla until well combined.

Beat in the egg until fluffy.

Slowly fold in the flour.

Press into the bottom of a parchment lined 9x13 inch pan and bake at 350 degrees F for bout 25 minutes or until it gets golden brown at the edges and is well baked through the center of the pan.

Cool completely on a wire rack before adding the top layer.

For the top layer, melt together the caramel candies, milk and vanilla extract over low heat. You can also do this in the microwave. Just check it every 30-60 seconds and stir.

Toast the coconut on a cookie sheet at 300 degrees F for about 8 -10 minutes. Stir the coconut around the pan a couple of times while toasting.

Stir in the toasted coconut.

Spread coconut and caramel mixture over the cooled shortbread base and cool in the fridge for a couple of hours before cutting into squares.

Melt the chocolate chips in a double boiler. You can dip the bottoms of the squares in chocolate if you like or just drizzle the chocolate over the top of the squares, or both. Place dipped squares on parchment or waxed paper to cool completely until the chocolate hardens.