Preheat oven to 350 degrees. Melt butter in medium saucepan over medium heat. Stir in curry powder, and cook until toasted, about 1 minute. Stir in sugar, water, honey, and 1 1/4 teaspoons salt. (Mixture will resemble wet sand.) Add cashews, and toss to coat using a rubber spatula.
Transfer cashew mixture to a parchment-lined baking sheet, and spread into a single layer using rubber spatula. Bake for 15 minutes. Remove from oven, stir, and sprinkle with coconut. Bake until cashews and coconut are golden, 6 to 7 minutes more.
Transfer sheet to a wire rack. Stir nuts, and let stand until cool and hardened, about 30 minutes.
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