Coconut Biscuits

Preheat oven to 350 degrees. Toast coconut on a rimmed baking sheet in oven, stirring often, until golden brown, about 10 minutes. Let cool completely.

Stir together flour, granulated sugar, coconut, nutmeg, baking soda, and salt in a medium bowl. Stir in water, 1 tablespoon at a time, until mixture forms a stiff dough (about 5 tablespoons water total). Form the dough into a rectangle. Wrap dough in plastic, and refrigerate until firm, about 15 minutes.

Preheat oven to 375 degrees. Roll out dough to 1/8 inch thick on a lightly floured piece of parchment paper. Transfer dough on parchment to a baking sheet. Refrigerate until firm, about 15 minutes.

Cut dough into 40 small rectangles (about 1 1/4-by-2 1/2 inches each) using a sharp knife. Transfer biscuits to parchment-lined baking sheets using a thin spatula. Lightly brush tops with water. Sprinkle with sanding sugar. Bake until biscuits just turn golden brown, about 11 minutes. Let cool on sheets on wire racks.