In a medium pot stir together sugar, butter and water over medium high heat. Bring to a boil and continually stir for about 7-9 minutes or until toffee turns a light to medium amber color.
Remove from heat and immediately pour out onto a cookie sheet. With an offset spatula, gently spread out just a little until toffee is even thickness. You won't spread it to the edges of the cookie sheet.
Quickly sprinkle with chocolate chips and let it sit for 1 minute.
Spread chocolate evenly over toffee and sprinkle with chopped coconut cashews.
Cool completely before breaking into small pieces, about 2 hours.
Recipe by Mandy's Recipe Box at https://mandysrecipeboxblog.com/coconut-cashew-toffee/