Preheat oven to 350 degrees F and grease an 8x8 baking dish. A glass dish is recommended to prevent the most sticking.
Mix mochiko, sugar, coconut milk, water, and food coloring until fully incorporated.
Pour into the baking dish and cover tightly with aluminum foil.
Bake 45-55 minutes or until mochi is cooked all the way through. See notes for microwave cooking instructions.
Let mochi cool. When mochi is completely cooled, dust with potato starch to prevent sticking and slice into rectangles using a pizza cutter or plastic knife, continuing to add more potato starch as needed. Chi chi dango will keep sealed at room temperature for a few days.
