Step 1

In a large bowl, soak the grated coconut in water and stir and press between your hands. Repeat several times.

Step 2

In a separate bowl, place a cheesecloth on top and scoop the grated coconut and water on top of it in 4-6 batches. Wring out the clothe to extract the coconut milk. Discard the solids.

Step 3

Place coconut milk in a saucepan and bring to simmer over medium heat. Cook until the liquids have evaporated, leaving the solids or curd and coconut oil. Stir from time to time so they can brown evenly.

Step 4

Remove from heat once it becomes light brown. Remember that it will continue to cook and brown while it cools down so remove it from heat early enough or the latik would burn.