Preheat oven to 350 degrees. Lightly butter a rimmed baking sheet.
In a small mixing bowl, gently stir together pineapple preserves, lemon zest, and lemon juice. Set aside.
In a separate small bowl, whisk together the egg and water until well blended.
Place shredded coconut in another mixing bowl and set aside.
In the bowl of an electric stand mixer fitted with the paddle attachment, mix together butter, sugar, and salt until combined.
Mix in coconut extract, then add flour and mix until combined.
Scoop dough out 1 tablespoon at a time and shape into balls.
Roll each dough ball in the egg mixture, then in the coconut mixture, pressing gently to adhere.
Transfer to plates, make an indentation in the center with your thumb, then fill each with 1/2 tsp of the preserves mixture.
Freeze for 10 minutes or chill in the refrigerator for 30 minutes.
Remove 12 cookies from the fridge at a time and transfer to the baking sheet.
Bake for 17 – 19 minutes until coconut is golden brown on edges.
Cool on the pan for several minutes then transfer to a wire rack to cool completely.
Repeat with remaining cookies. Store in an airtight container.