Step 1: Line an 8 x 4-inch loaf pan with foil, then brush foil with soft butter.
Step 2: In a microwave-safe bowl combine (unwrapped) caramels with 3/4 cup flaked coconut, white baking chips and chopped peanuts.
Step 3: Microwave on high setting uncovered for 1 minute; remove and stir, then continue the cook uncovered for another 40-60 seconds or until the caramels are melted, stir until smooth.
Step 4: Press the caramel mixture into prepared loaf pan.
Step 5: Sprinkle with remaining 1/4 cup coconut; press down lightly so that the coconut sticks to the caramel
Step 6: Cool completely.
Step 7: Using foil ends lift the caramel out of the pan; remove the roil.
Step 8: Cut into about 1-inch pieces.
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