Bring milk and water to the boil. Reduce the heat and add the sugar and butter. Stir over a gentle heat until the sugar dissolves. Return ot the boil and cook the mixture stirring occasionally until the temperature reaches 238F.
Remove from the heat and stir in the coconut and vanilla. Beat briskly until thick and creamy.
To make coconut ice balls, stir in the pink food colouring and leave the mixture to cool slightly. Take small amounts between your fingers and roll them into balls. Place the balls in individual paper cases and leave them to set completely.
Alternatively you can make the traditional two coloured coconut ice. Pour half the mixture into a greased 8 inch square cake tin (pan). Colour the remainder with pink food colouring and spread it over the white layer. Leaver the coconut ice to set and serve it cut into squares.
Makes 2lb of coconut ice.