1-Step 1: Toast the Coconut Start by preheating your oven to 425°F. This high temperature quickly caramelizes the coconut sugars for maximum flavor. Line a baking sheet with parchment paper this prevents sticking and makes cleanup easy. Spread the entire bag of shredded sweetened coconut in an even layer across the sheet. The coconut needs to be in a single layer for even browning. Place on the middle oven rack and bake for 3 minutes. Watch the coconut closely during toasting it goes from golden to burnt very quickly! After 3 minutes, remove the sheet and stir the coconut thoroughly. Return to the oven for another 3-4 minutes, checking frequently. You’re looking for a uniform golden brown color and a fragrant, nutty aroma. Once toasted, transfer the coconut to a separate bowl to cool completely. It will crisp up as it cools.

2-Step 2: Prepare the Coconut Pudding Base While the coconut cools, whisk together the instant coconut pudding mix and whole milk in a large bowl. Use cold milk straight from the refrigerator for the best results. Whisk vigorously for about 2 minutes until the mixture begins to thicken. Add the sweetened condensed milk and continue whisking until smooth and fully combined. The pudding may seem thin at first, but it will continue thickening as it sits. Let the mixture stand for 3 minutes to allow the pudding to set slightly. This combination of instant pudding and sweetened condensed milk creates a rich, creamy base that’s more decadent than pudding made with milk alone. The texture should be thick enough to hold soft peaks when you lift the whisk.

3-Step 3: Whip the Cream In a separate bowl, pour the heavy whipping cream. Add the powdered sugar and vanilla extract. Using an electric mixer on medium-high speed, beat the cream until stiff peaks form. This usually takes 3-4 minutes depending on your mixer. Stiff peaks mean the cream stands upright when you lift the beaters. Don’t over-beat, or the cream will become grainy and eventually turn to butter. The whipped cream should be smooth, fluffy, and hold its shape beautifully.

4-Step 4: Combine Pudding and Whipped Cream Gently fold the whipped cream into the pudding mixture using a spatula. Work in batches, adding about one-third of the whipped cream at a time. Use a folding motion cut down through the center, scrape along the bottom, and fold over the top. This folding technique preserves the air bubbles in the whipped cream, keeping the mixture light and fluffy. Continue until no white streaks remain and the color is uniform. The final mixture should be pale beige and incredibly silky.

5-Step 5: Assemble the Layers Now comes the fun part assembling your Toasted Coconut Cream Pudding! You can use a large trifle bowl, individual glass jars, or any clear container that shows off the layers. Start with one-third of the vanilla wafers spread across the bottom. Add one-third of the toasted coconut, then spread one-third of the pudding mixture evenly on top. Repeat these layers two more times, ending with a generous sprinkle of reserved toasted coconut on the very top. For the prettiest presentation, save some of the best-looking toasted coconut pieces for garnish. The contrast between the dark golden coconut and the creamy white pudding creates visual appeal.

6-Step 6: Chill Before Serving Cover your assembled dessert with plastic wrap. Press the wrap gently against the surface to prevent a skin from forming on the pudding. Refrigerate for at least 2 hours, though overnight chilling allows the flavors to meld beautifully. During chilling, the vanilla wafers soften slightly, creating a cake-like texture. The toasted coconut maintains its crunch on top, while the layers set into a cohesive dessert that slices cleanly.