Banging my head here, tried a couple of different things. My current iteration is here:

@Composable
fun CircleButton(vectorID: Int, modifier: Modifier = Modifier, click: () -> Unit = {}) {
	Button(
		onClick = click,
		modifier = modifier.size(40.dp),
		shape = CircleShape,
		elevation = ButtonDefaults.elevation(defaultElevation = 5.dp),
		colors = ButtonDefaults.buttonColors(
			backgroundColor = Color.Transparent
		),
		contentPadding = PaddingValues(5.dp)
	) {
		Image(
			modifier = Modifier
				.clip(CircleShape)
				.background(color = Color.White),
			painter = painterResource(id = vectorID),
			contentDescription = null,
			colorFilter = ColorFilter.tint(color = colorResource(id = R.color.accent_blue))
		)
	}
}

But this produces a shadow that is 40.dp. I want the shadow and depress feedback on just the inset icon. But I want the touch target to be outset to the larger size

Material library has an

IconButton

that does the elevation animation on the icon, have you tried that?

For some reason, i had convinced myself at some point that that only works with Icons, not Drawables fetched from

painterResource(R.drawable.whatever)

Well you place an Icon as the content of an IconButton. Icon takes painter, vector, and bitmap.

Threw darts for a while and eventually came up with this:

@Composable
fun CircleButton(vectorID: Int, modifier: Modifier = Modifier, click: () -> Unit = {}) {
   IconButton(onClick = click, modifier = modifier
      .size(40.dp)
      .padding(6.dp)) {
      Icon(
         painter = painterResource(id = vectorID),
         contentDescription = null,
         modifier = Modifier.shadow(elevation = 4.dp, shape = CircleShape),
         tint = colorResource(
            id = R.color.accent_blue
         )
      )
   }
}

The push down highlight isn't quite what I wanted, but it's good enough. And this is less code/simpler than my previous attemps.

Do you have a mockup or video of what you want to do? It seems you want to deviate from the default interaction animations in the Material components like the FAB?