Combine butter and sugar in large bowl. Beat at medium speed, scraping bowl often, until creamy. Add milk; beat until well mixed. Add flour; beat at low speed until well mixed. Stir in coconut.
Wrap dough in plastic food wrap. Refrigerate 1-2 hours or until firm.
Heat oven to 325°F. Shape tablespoonful of dough to resemble 1x3/4-inch egg. Roll each cookie in edible glitter or decorator sugar, if desired. Place 1 inch apart onto ungreased cookie sheets. Bake 10-12 minutes or until bottoms are lightly browned. Cool completely.
*Substitute 1/2 cup chopped pecans.
Edible glitter is available in a variety of colors and is great for decorating or stenciling cookies, cakes or cupcakes. This glitter is also available in several sizes, from coarse to fine. Edible glitter is available at specialty cake decorating and craft stores.