Coconut-Macadamia Caramels

Cook first 3 ingredients and 1/2 cup half-and-half in a large heavy saucepan over low heat, stirring constantly, until sugar dissolves. Cover and cook over medium-low heat 2 to 3 minutes to wash down sugar crystals from sides of pan.

Uncover and cook, stirring constantly, until a candy thermometer registers 242° (firm ball stage). Add 1/2 cup half-and-half, and cook over medium heat, stirring constantly, 12 minutes or until candy thermometer returns to 242°. Repeat procedure with remaining 1/2 cup half-and-half. Stir in flaked coconut and remaining ingredients.

Pour into a buttered 9-inch square pan. Cool and cut into 1 1/2-inch logs; wrap individually in wax paper.