Preheat oven to 350F. Line 2 baking sheets with parchment paper.
In the bowl of a stand mixer fitted with a paddle attachment, cream together butter and sugars until light and fluffy. Add in pudding mix and beat until well blended. Add eggs and vanilla.
In a separate bowl, stir together flour and baking powder to remove lumps. Add the flour mixture to the wet mixture and beat until well incororated. Use a rubber spatula to fold in coconut, pretzels, and M&Ms.
Take heaping tablespoonfuls of dough, roll into balls, and place on prepared baking sheets, leaving about 2 inches space between each one.
Bake for 8 - 12 minutes, rotating sheets halfway through, until light golden brown. Let cool on baking sheet for about 3 minutes before transferring to a wire rack to cool completely. Repeat with remaining dough.