Preheat the oven to 350 degrees F. Line two baking sheets with parchment paper and set aside. Place the Land O Lakes® Salted Butter in the bowl of an electric mixer and add the sugar. Beat on high (cream) until light and fluffy, 3 to 4 minutes. Then beat in the vanilla extract. Turn the mixer on low, then slowly add the flour until fully incorporated. Scrape the bowl, then mix in 2 cups of shredded coconut. The dough will look crumbly.
Roll the dough into 1 ounce (about 1-inch) balls. Use your thumb to press a deep crevice in the center of each ball, and pinch any cracks on the sides back together. In a small bowl whisk the egg with 1 tablespoon of water to make egg wash, then place the remaining coconut in a separate bowl. Dip each cookie into the egg wash then roll in the shredded coconut to coat the sides. Place 1 1/2-inches apart on a baking sheet. Repeat.
Bake the cookies for approximately 15 minutes, until they are puffy and the coconut is toasted. Cool on the cookies sheets. Meanwhile, place the softened cream cheese in a mixing bowl. Beat until soft and fluffy then slowly incorporate the pomegranate juice. Scrape the bowl and beat again until smooth. Slowly add the powdered sugar and beat until smooth. Add 1 drop of red food coloring if desired and mix well.
Once the cookies have cooled, scoop the pomegranate filling into a plastic bag. Cut one corner off and pipe the filling into the center of each cookie. Allow the cookies to set until the pomegranate filling has developed a coating. Then melt the chocolate over a double boiler and scoop into another plastic bag. Cut a small section of the corner off and drizzle the chocolate over the cookies, if desired. Allow the chocolate to set before moving.