Sift the dry ingredients. Add butter and gently blend. Add coconut milk and coconut, removing 3 tablespoons for topping and add papaya. Stir together adding additional milk if necessary. Knead lightly for 30 seconds and roll to 3/4-inch. With a cutter, punch out 2-inch rounds.
Place on a lightly buttered sheet and brush top of biscuits with butter and top with reserved coconut.
Bake in a preheated 450 degree oven for 12-15 minutes