Coconut Almond Dreams

I got this recipe from my boss's wife when I worked at Northside Independent School District. She was from England. I make them during Christmas.

1 cup butter or margarine, softened
1 cup sugar
1 egg
1/2 tsp. almond extract
1 1/3 cups flaked coconut
2 1/4 cups flour
1/2 tsp. baking soda
1 egg white
1 T. milk
Almond or pecan halves, toasted

Cream butter and sugar. Beat in egg and extract. Stir in 1 cup of the coconut. Stir flour with soda and 1@ tsp. Add to creamed mixture. Mix well. Knead in bowl until dough clings together. Shape into three 8 inch logs. Roll in remaining coconut. Wrap in waxed paper or clear plastic wrap. Chill well. With sharp knife cut each roll into 24 slices. Place 2 inches apart on un-greased cookie sheet. Beat yolk with milk. Brush over cookies, lightly. Press a nut on top of each cookie. Bake at 325 for 17-20 minutes. Makes 6 dozen.