Coconut Cream Cheese Frosting - 1/2 cup butter (softened), 8-oz cream cheese (softened), 1 tsp. coconut extract, 1 bag powdered sugar, Milk (as needed).
In a large bowl, beat butter, cream cheese, and coconut extract; add powdered sugar little by little until reaching desired consistency. If it gets too stiff, add 1 tsp. milk at a time until you get the consistency you want.
Preheat oven to 325 degrees. Place shredded, sweetened coconut on a cookie sheet; spread it out into a single layer. Bake for 8-10 minutes. Some pieces will still be white and soft, while some will be slightly browned with a little crunch.