Step 1: Preheat your oven to 350°F (175°C). Line two baking sheets with parchment paper or silicone mats.
Step 2: In a large bowl, cream together the softened butter and granulated sugar until light and fluffy, about 2-3 minutes using an electric mixer.
Step 3: Beat in the sweetened condensed milk and vanilla extract until well combined and smooth.
Step 4: In a separate medium bowl, whisk together the all-purpose flour, milk powder, desiccated coconut, baking powder, and fine salt.
Step 5: Gradually add the dry ingredients to the wet ingredients, mixing on low speed until just combined. Be careful not to overmix.
Step 6: If the dough appears too dry or crumbly, add milk one tablespoon at a time until a soft, pliable dough forms. (This step may not be necessary).
Step 7: Scoop spoonfuls of dough (about 1 tablespoon each) and roll them into smooth balls. Place them about 2 inches apart on the prepared baking sheets.
Step 8: Bake for 15-20 minutes, or until the edges are lightly golden brown. The centers should still be slightly soft.
Step 9: Remove from the oven and let the biscuits cool on the baking sheets for 5 minutes before transferring them to a wire rack to cool completely. They will firm up as they cool.