Toggle Bluetooth using wired keyboard on iMac Every so often my iMac looses the Bluetooth mouse connection. The only way to resolve this (other than a reboot) is to switch Bluetooth off, wait about 10 seconds then switch it back on.

This involves plugging-in a wired mouse, make the above happen, then unplug it.

I use a wired keyboard which continues working without Bluetooth. Is there a way I can set something up, or a keyboard shortcut, to switch off Bluetooth, wait, then switch it back on?
Nimesh’s answer is very clever and requires no extra tools, so that may be what you want.

However, there is a much easier way, if you are willing to spend a few minutes to download and install some apps/tools once in order to have a simpler way to turn Bluetooth off/on in the future.

First, download and install blueutil from http://www.frederikseiffert.de/blueutil/download/blueutil.zip

Unzip it, double-click the Install.command and enter your password, and it will be installed to /usr/local/bin/blueutil. 

(If you use brew, ignore the above and just do: brew install blueutil) 

After that, you just need a way to run it via the keyboard. For that, I highly recommend Alfred, although you could use LaunchBar instead.

Assuming you use Alfred, get this Bluetooth toggle workflow and you can enable/disable Bluetooth with a few keystrokes.