In the bowl of a mixer, combine the softened butter, granulated sugar, and powdered sugar. Mix until fully combined. You are looking for the butter and sugar mixture to be smooth, not fluffy.
Mix in the salt, water, vanilla extract and almond extract. Mix until fully combined.
Gradually add in the flour and water, mixing slowly at first to prevent flour from going everywhere. Scrape the sides of the bowl as needed. Mix just until the flour is full incorporated. Mix in the toasted and cooled coconut.
Turn the dough out onto a lightly floured piece of parchment paper. Gently knead until it forms a smooth ball, then divide in half. Roll each half into a log about 2 inches wide, reshaping if it feels hollow in the middle.
Wrap each log in parchment paper, twist the ends, and refrigerate for at least 2 hours.
Preheat the oven to 350°F. Unwrap one log and place the parchment on a baking sheet.
Using a serrated knife, slice the dough into ½-inch thick pieces. Place on the baking sheet and refrigerate again for 20 minutes.
Place chilled cookies into the oven and bake for 20-25 minutes, or until the edges are just lightly golden. Cool before decorating.
Melt the chocolate according to the package's instructions. Dip half of each cookie in the melted chocolate, place on parchment paper and sprinkle with the chopped almonds.
Allow the chocolate to set before serving. Enjoy!