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Preheat oven to 350°. In a large bowl, cream butter and sugar until light and fluffy, 5-7 minutes. Beat in egg and vanilla. Combine flour and baking powder; gradually beat into creamed mixture. Stir in 1-1/4 cups coconut and walnuts. , Press 3/4 of the dough into a greased 13x9-in. baking pan. Spread with preserves. Sprinkle with chips and remaining 3/4 cup coconut. Crumble remaining dough over the top; press lightly. , Bake until golden brown, 30-35 minutes. Cool in pan on a wire rack. Cut into bars.