Combine flour, sugar, undissolved yeast, and salt in a large bowl. Stir in milk, oil, egg, vanilla and coconut extracts until well blended. Mix in coconut. Cover; let rise in a warm draft-free place for 1 hour until doubled.
Stir down batter. Pour about 1/4 cup batter per pancake onto a hot, lightly oiled griddle or skillet. Cook until edges of pancakes appear dry and small bubbles form on surface. Turn; cook on other side until golden brown.