Combine flour, sugar, salt, and baking powder in a mixing bowl. Grate in the butter and stir till coated. (Or you can cut it in with a pastry blender.) Add the chocolate chips and coconut.

In a small bowl, whisk together the egg, vanilla, and milk. Add to dry ingredients and stir lightly till just moistened. If you need to add a little more milk you can. Don't over-mix!

Divide dough in half and pat into 2 circles that are about 5" across. Cut each into 6 wedges. Place on cookie sheets. (Tip: For great texture and scones that rise up instead of spreading out, freeze the scones on the pan for 30 minutes.)

Bake in a preheated 425° oven for about 18-20 minutes or till golden brown.

Melt the 1/4 cup of chocolate chips and drizzle over the scones. Sprinkle with toasted coconut.