1. Preheat oven to 350°. Toast coconut flakes in a dry pan overs med-low heat until it is golden and fragrant. Be careful not to burn it. Let cool.
2. In a large bowl, whisk 2 1/2 cups of the coconut with the flour, sugar, nutmeg, baking powder, baking soda and salt.
3. Mix in the coconut oil, Malibu rum, vanilla, coconut extract, and coconut water. Stir in the chopped macademia nuts and knead together with your hands.
4. Form 4 flat loaves about 8" X 4" on lined baking sheet. Bake until loaves are golden brown about 20 minutes.
5. Remove and let the loaves cool before slicing into biscotti size cookies with a serrated knife on a cutting board. Handle carefully so they don't fall apart. Place cookies back on baking sheet in rows, cut side down.
6. Reduce the oven temperature to 300° and return to the oven. Bake for 7 minutes and then remove and turn them over to bake other side. Bake for 7 more minutes and then remove to wire rack to cool.
5. Melt the white chocolate in the microwave for about a minute. Put in piping bag or a ziploc bag with the corner tip snipped. Pipe white chocolate on top of biscotti and then dust with remaining coconut flakes.