In a bowl, cream the butter, cream cheese and sugar until light and fluffy. Beat in egg yolk and extract. Combine the flour, baking powder and salt, gradually add to creamed mixture and mix well. Stir in 3 cups coconut. Cover and refrigerate for 1 hour or until dough is easy to handle.
Roll into 1 inch balls and roll in the remaining coconut. Place 2 in apart on ungreased baking sheets.
Bake 350 degrees for 10-12 minutes or until lightly browned. Immediately press a chocolate kiss into the center of each cookie, sprinkle with coarse sugar. Cool on a pan for 2-3 min or until chocolate is softened. Move to wire racks to coo completely.