Make the coconut kisses: In a medium non-stick pan, mix the condensed milk and the butter, and then cook over medium-low heat, stirring constantly, until the mixture reduces, thickens, and starts to darken a little.

Remove the pan from the heat and mix the vanilla extract and grated coconut until obtaining a homogeneous coconut mixture.

Spread the mixture on a greased plate and let it cool to room temperature before starting to roll it into balls.

Prepare the hard caramel: In another medium non-stick pan, mix the sugar, water, and vinegar until a homogeneous mixture is obtained.

Cook over medium heat, without stirring, until the sugar dissolves completely.

The caramel will acquire a light caramel/golden honey color.

Watch the pan constantly to avoid caramel quickly turning dark or burning.

The caramel syrup has to reach the hard-crack stage (300°F to 310° F).

Caramelize the coconut candies: Stick a long wooden skewer or toothpick into each coconut ball, reduce the heat to low, and tilt the pan.

Quickly & carefully dip the coconut balls into the syrup and let any excess syrup drip off.

Let cool: Place the caramelized coconut bon bons on a cookie sheet lined with parchment paper, remove the toothpick and allow the caramel to harden completely.

Using a sharp knife, cut the excess caramel from the sides of the base.

Wrap: Place each candy into a bonbon paper mold, or wrap in cellophane, twisting the ends if you prefer to serve them as wrapped candies.