Preheat oven to 375. In large bowl, cream butter, shortening and sugars until light and fluffy. Beat in eggs and extracts. Stir in sour cream. Combine flour and baking soda, and gradually add to creamed mixture and mix well.
Roll cookies in coconut.
Drop by tablespoon 2" apart on lightly greased cookie sheets. Bake 8-10 minutes.
FROSTING: In small heavy saucepan, heat butter--5 to 7 minutes or until golden. Pour butter into large bowl and beat in conf. sugar, milk & extracts.
Let cookies cool before frosting; then dip iced tops in coconut.