In large mixing bowl add softened butter, granulated sugar, and brown sugar. Beat on medium speed until creamy; beat in vanilla. Add eggs 1 at a time, beating well after each addition.
In a medium bowl whisk together flour, baking powder, and baking soda. Slowly add to butter mixture with mixer running on low speed; just until well combined.
Stir in coconut and macadamia nuts. Wrap in plastic wrap and chill at least 1 hour.
Baking - Heat oven to 350° F.
Scoop dough into 1-1/2 inch balls. Place on ungreased cookie sheet 2-inches apart; gently press dough just to flatten slightly. Bake 9 - 11 minutes until edges begin to brown.
Remove from oven. Let cool on cookie sheet 1 minute. Remove cookies to a wire cooling rack and let cool completely.