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Toast the coconut in a skillet over medium heat until golden brown.
In a medium bowl, whisk the egg, milk and coconut milk until combined. Then pour the mixture into a saucepan.
Stir in cornstarch, sugar, and salt and cook for 5-6 minutes over medium heat or until the mixture thickens (whisking constantly).
Turn off the heat and stir in the butter and vanilla extract. Divide the pudding between 4 serving dishes, top with toasted coconut and then put in the fridge.