Directions:

1. Preheat oven to 350°F. Spread the coconut on a baking sheet. Toast in oven until the coconut is golden brown – approximately 7-10 minutes. Cool to room temperature. Reserve. Lower oven temperature to 300°F.
2. In a small saucepan, combine sugar and 2 tablespoons of water and cook over medium heat. Swirl pan while sugar is cooking so that it caramelizes evenly. Use a pastry brush dipped in water to clean the sides of the pan occasionally. Cook until sugar is melted and color is golden brown. Remove from heat and immediately ladle evenly into 12 – 4 ounce ramekins. Reserve.
3. Using an electric mixer on medium speed, beat cream cheese, evaporated milk, and sweetened condensed milk together. Add eggs one at a time, mixing well between additions. Add vanilla extract and mix until all ingredients are incorporated. Pour mixture evenly into ramekins.
4. Bake in a water bath in center of oven until slightly set in the center – approximately 1 hour. Remove from oven and let cool to room temperature. Chill in refrigerator for at least 4 hours.
5. Run the tip of a paring knife between the custard and the inside
of cup. Place a small plate upside down on top of the cup, then flip over. Holding the plate and cup together, give one firm and quick shake to loosen custard. When cup is removed, the caramel will run over the top and sides of custard. Top with toasted coconut before serving.