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Line the bottom of an 8 x 4 inch loaf pan with parchment paper, leaving some overhang for easy removal later.
Add white chocolate chips to a large microwave safe mixing bowl. Heat chocolate in 15-30 second intervals, stirring in between with a spatula until chocolate is completely melted.
Add in the condensed milk and stir until it is fully incorporated. Make sure your condensed milk is room temperature before using or it will cause the fudge to seize.
Transfer the mixture to your lined loaf pan. Sprinkle the surface evenly with finely shredded coconut.
Place the fudge into the fridge for 2-4 hours, or until set.
Cut the fudge into approximate 1-inch squares with a large sharp knife. The fudge is a little chewy and sticky so it is easier to cut it while it is cold rather than letting it come to room temperature.
Store uneaten fudge in an airtight container in the fridge or freezer.