Preheat oven to 350.

Spread the coconut in an even layer on a large baking sheet. Toast until golden, 8-12 minutes, stirring occasionally. Cool completely. Set aside 1/2 cup of the toasted coconut.

Place the Chocolate Chex in a large mixing bowl. Toss with 2 cups of the toasted coconut.

In a medium saucepan over medium-low heat, melt the butter and Milky Way Candy bars, stirring constantly, until smooth.

Pour the melted Milky Way mixture over the Chocolate Chex and coconut, stirring gently until the cereal is evenly coated.

Place 1/2 of the powdered sugar (3/4 cup) in a large, zip-top bag. Add in half of the chocolate coated cereal. Shake well to coat in powdered sugar.

Spread the cereal mixture onto a large, parchment lined baking sheet. Repeat the process with the other 1/2 of the powdered sugar and cereal mixture.

In a microwave safe bowl, heat the caramels and cream at 50% power for one minute. Stir and return to the microwave at 50% power at 30 second intervals until caramels are melted and smooth. Drizzle caramel over the cereal mixture. Sprinkle the reserved coconut on top.

In another microwave safe bowl, melt the chocolate chips at 50% power until smooth. Drizzle over the cereal mixture.

Cool until chocolate and caramel are set. Store in an airtight container.