Preheat the oven broiler on low. Line a cookie sheet with parchment paper and spread coconut flakes on the cookie sheet.
Toast the coconut flakes for 2 to 3 minutes or until they begin to brown.
In a large mixing bowl, add the cream cheese, whipped topping, powdered sugar, caramel sauce, and coconut extract. Stir until well combined.
Fold in the ½ cup of the toasted coconut flakes.
Cover and chill in the refrigerator for an hour. Sprinkle the top with the remaining toasted coconut before serving. Serve with cookies, pretzels, graham crackers, fruit, etc.