In a saucepan add desire amount of water, add sugar and let it boil.

2. Add the grated coconut, and let it boil for about 5minutes.  

3. Mix powdered milk with water, into a thick consistency. Not to thick. Gradually add the milk into the saucepan and stir gently.  

4. It will thicken and that's ready.

Serve hot or chilled.

Voilà