Step 1

Line an 8x8-inch baking dish with foil and oil it lightly with a paper towel (or spray generously with non-stick cooking spray) for easier removal later.

Step 2

Add coconut to a skillet over low heat. Cook, stirring regularly, until coconut is just toasted and slightly browned. Watch it closely so it doesn’t burn. Remove from heat immediately and transfer coconut to a small bowl.

Step 3

In a large microwave-safe bowl, combine white chocolate chips and sweetened condensed milk.

Step 4

Microwave on high in 30-second intervals, stirring well in between, until mixture is smooth. Stir in RumChata™ and microwave for 30 seconds more, or until mixture starts to bubble. Stir well for 10-15 seconds so that RumChata™ is completely incorporated.

Step 5

Stir in 1 cup of the toasted coconut and transfer mixture to the prepared baking dish. Spread mixture out so it’s evenly distributed and top with remaining coconut.

Step 6

Refrigerate fudge for 3-4 hours until completely set. Cut into even squares (you should get at least 16). Store extra fudge in the fridge up to one week.