1. In a large bowl, cream butter, sugar and vanilla. Add egg; mix well. Combine flour and baking powder. Gradually add to creamed mixture. Fold in coconut and walnuts.
2. Press two-thirds of dough into a greased 13-in. x 9-in. baking pan. Spread with preserves; crumble remaining dough over preserves. Bake at 350° for 30-35 minutes or until golden brown. Cool in pan on wire rack. Cut into bars. Yield: 3 dozen.