In your stand mixer bowl, dissolve the sugar into the water. Sprinkle yeast over and let set for about 5 minutes until foamy.
Beat egg in a separate cup, then put into yeast.
Add remaining ingredients, except for the coconut. Mix on low speed until blended.
Knead on medium-low speed for about 6-8 minutes, until soft dough forms and pulls away from the sides of the bowl. If needed, add a little more flour or water to make the right consistency.
Add coconut and continue kneading just until mixed in.
Put in greased bowl, turning to grease all sides of dough. Cover and let rise until doubled, about an hour.
Punch down. Let rest for about 10 minutes.
Grease a 9 x 13 baking pan.
Divide dough into 15 similar sized balls. Place in the baking pan. Cover and let rise until doubled, about 30 minutes.
Preheat oven to 375°F.
Bake until golden brown, about 15-20 minutes.
Cool on wire rack. Serve warm or cool.