Toast the shredded sweetened coconut on a sheet pan at 325F for 6 to 8 minutes, stirring once, until golden and fragrant (visual cue: light browning at edges). Cool to room temperature.

In a Dutch oven, heat full-fat coconut milk and granulated sugar over medium heat for 3 to 5 minutes, stirring until the sugar dissolves and the mixture steams (visual cue: small wisps of steam rise).

Whisk egg yolks in a bowl until smooth, then slowly whisk the hot coconut milk mixture into the yolks in a thin stream (visual cue: the mixture turns glossy and homogeneous).

Return the mixture to the saucepan and cook over medium-low heat for 5 to 7 minutes, stirring constantly, until it reaches 175F and coats the back of a spoon (visual cue: swipe a finger through it and the line holds).

Strain the custard into a clean container, then stir in vanilla extract, coconut extract, and salt until fully incorporated (visual cue: no streaks remain).

Cover and refrigerate for at least 4 hours until thoroughly chilled (visual cue: cold throughout).

Churn the chilled custard in an ice cream maker until thick and creamy, then fold in toasted coconut for the last 2 minutes of churning (visual cue: toasted flakes distribute throughout).

Transfer to a freezer-safe container and freeze for 2 to 4 hours until firm (visual cue: scoopable and set, not soft).