Preparation:

• Activate the Yeast: In a small bowl, heat the coconut milk until warm but not hot. Stir in the sugar and sprinkle the yeast over the surface. Let it sit for about 5-10 minutes until foamy.
• Mix the Dough: In a large mixing bowl, combine the flour, shredded coconut, and salt. Make a well in the center and pour in the activated yeast mixture and melted butter or coconut oil. Stir until a dough forms.
• Knead the Dough: Transfer the dough to a lightly floured surface and knead for about 5-7 minutes until smooth and elastic. You can also use a stand mixer with a dough hook attachment for this step.
• First Rise: Place the dough in a greased bowl, cover with a clean kitchen towel or plastic wrap, and let it rise in a warm, draft-free place for about 1-2 hours until doubled in size.
• Shape the Loaf: Punch down the risen dough and transfer it to a lightly floured surface. Shape it into a loaf and place it in a greased loaf pan. Cover and let it rise again for another 30-45 minutes until it reaches the top of the pan.
• Bake the Bread: Preheat the oven to 350°F (175°C). Optionally, brush the top of the loaf with some melted butter or coconut oil and sprinkle with shredded coconut. Bake for 30-35 minutes until golden brown and hollow-sounding when tapped on the bottom.
• Cool and Serve: Remove the bread from the oven and let it cool in the pan for about 10 minutes. Then, transfer it to a wire rack to cool completely before slicing. Serve the Coconut Bread warm or at room temperature, plain or with your favorite spreads.