| In large bowl, combine 1 1/2 cups flour, 1/3 cup sugar, undissolved yeast and salt. Cut 1/3 cup butter into small pieces; combine with milk and water. Heat butter mixture until warm (105? to 115?F). Stir into dry ingredients. Stir in 2 eggs, coconut and additional 2 1/2 to 3 cups flour to make stiff batter; grease top. Cover bowl tightly with plastic wrap; refrigerate for 2 to 24 hours.
Combine 1/3 cup flour and remaining 1/4 cup sugar. Cut in remaining butter until crumbly. Reserve.
On floured surface, roll dough to 14- ? 12-inch rectangle. Cut into 14 (1-inch wide) strips. Roll to (14-inch length) ropes. Shape as pretzels: Form each rope into "U". Lift ends of each rope, cross twice and fold back over center of rope. Place on two large greased baking sheets. Cover; let rise in warm, draft-free place until doubled in size, about 15 to 30 minutes.
Lightly beat remaining egg; brush on rolls. Sprinkle sugar mixture on rolls. Bake at 375?F for 15 to 20 minutes or until done, switching position of sheets halfway through baking. Remove from sheets; cool on wire racks.