Heat oven to 350 degrees F. Place coconut on a baking sheet and bake for about 18 minutes, stirring occasionally, until lightly browned. Set aside.
Sift the confectioners sugar and cornstarch into a small bowl. Line a 13 x 9 x 2-inch baking pan with nonstick foil. Coat with nonstick cooking spray. Sift 2 tablespoons of the sugar-cornstarch mixture into the pan, tilting to coat sides.
Place 2/3 cup water in a large bowl and sprinkle gelatin over the top. Let soften 5 minutes.
In a medium-size heavy-bottomed saucepan, heat sugar, corn syrup and salt over medium heat for about 7 minutes, until sugar dissolves. Stir occasionally. Strain into bowl with gelatin and stir in coconut extract.
Beat on high speed with an electric mixer until light and fluffy and beaters leave tracks in mixture, about 12 to 14 minutes. Spread into the prepared pan and smooth top. Sprinkle 1/4 cup of toasted coconut over top. Let set at room temperature for 2 hours.
Lift marshmallow from pan using foil. With a wet knife, cut into 6 squares. Spread remaining sugar-cornstarch mixture onto a baking sheet. Carefully dip bottoms of each marshmallow square in mixture on sheet. Cut each into 6 pieces. Dip cut-sides in remaining coconut. Set on a sheet; allow to set for an additional hour. Store loosely covered at room temperature. Makes 36 Pieces.