In a small bowl, combine flour, baking powder, and salt; set aside.
In a large mixing bowl, beat butter and cream cheese until creamy and well-combined.
Add sugar and almond extract to mixing bowl with butter and cream cheese; beat until fluffy, approximately 2 minutes.
Add flour mixture to mixing bowl and slowly beat until well-combined. Then, add 1 cup of coconut flakes and fold in using a large rubber or wooden spatula.
Refrigerate dough mixture in mixing bowl for 45 minutes or until firm.
Once dough is ready, preheat oven to 350 degrees (or 325 degrees if using non-stick baking sheets).
Put 1/2 cup coconut flakes into a small glass bowl and add 1 drop of yellow food coloring. Stir with a spoon until coconut flakes are coated in yellow coloring.
Then, put 1/2 cup coconut flakes into another glass bowl and add one drop of pink or red food coloring. Stir with a spoon until coconut flakes are coated in pink/red coloring.
Optional: mix both bowls of coconut flakes into one bowl and mix well to combine.
Roll dough into individual small balls, rolling into the bowl(s) of coconut flakes until covered, and placing on to a baking sheet 1" apart with one M&M placed into the center of each ball.
Bake on a non-greased cookie sheet for approximately 12 minutes. Remove from oven, adding two more M&Ms to the center of each cookie to make them look like a bird's nest with eggs.
Place back into oven and cook for 5 minutes longer or until the cookies are lightly golden brown.
Cool on the baking sheet for 5 minutes, then transfer to a cooling rack.