Coconut Thumbprints

1 (12 oz.) pkg. confectioners’ sugar substitute, such as Swerve

1 (5 lb.) pkg. all-purpose flour

1 (10 oz.) pkg. unsweetened shredded coconut

1 (2 oz.) btle. coconut extract

1 (12.75 oz.) jar sugar-free strawberry preserves

1 (1 lb.) pkg. butter