preheat oven to 400 degrees. Spread coconut out on a baking sheet and toast until light golden color. 5-9 minutes. Let cool and then pulverize in a food processor.
Mix flour, sugar, baking powder and salt in a large bowl. Cut in cold butter until it is size of big crumbs. Set aside.
In a smaller bowl, lightly beat egg, whisk in cream and coconut extract. Make a well in the flour and add the milk egg mixture, the coconut and chocolate chips. Mix until it starts coming together. Dump out on a board and knead 10-12 times. Pat out into a rectangle and cut into 12 pieces.
Place on greased sheet pan until golden brown, about 13-17 minutes. You can brush your scones with more cream and sprinkle with sugar for a more dressy look.