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Combine dry milk, sugar, salt, and cornstarch until well mixed.
Pulse shredded coconut in a blender or food processor for 1 minute, then stir into dry mix.
Store in an airtight container.
To make pudding: Whisk ½ cup of mix with 2 cups of water (or milk). Cook over medium heat, stirring constantly, until thickened (5–7 minutes). Stir in 1 tsp coconut extract. Cool slightly and serve warm, or chill 2+ hours for a firmer texture.
To make pie filling: Use 1 cup of mix and 3 cups of milk. Prepare as above, stir in 1 tsp coconut extract, then pour into a baked pie shell. Chill until set.