This old-fashioned coconut ice recipe is creamy and coconutty, melting in your mouth with every bite. Made in just a few minutes, this sweet holiday treat is super quick and easy to whip together.

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This sweet treat recipe reminds me of my mum. She loved making coconut ice when I was a kid, and it reminds me of the few days leading up to Christmas.

We always had batches of Old-Fashioned Caramel Fudge and Grandma’s Old-Fashioned Fudge Recipe boiling in the kitchen over the holidays.

While fudge can be more labour-intensive to make, this coconut ice doesn’t require a long amount of boiling or using a candy thermometer for accurate temperatures.

I’ve made this recipe quick and easy, only requiring a short time on the stovetop. It’s a great treat to make with the kiddos!

Stack of coconut ice on a mini plate

Gifting Tips

Coconut ice is a wonderful sweet treat to gift to loved ones. Pair with fudge, Biscoff truffles or festive peppermint bark. Here are some gift-wrapping ideas:

  • Cellophane bags
  • Recycled jam jars
  • Old tins lined with fabric napkins
Coconut ice pieces wrapped in cellophane with a white ribbon

Ingredients

The printable recipe card below has the full ingredients list and instructions.

  • Powdered sugar – also known as icing sugar. It creates the smooth and creamy texture of this coconut ice recipe.
  • Condensed Milk – this adds a sweet creamy flavour to the fudge. Not to be confused with evaporated milk. Try making homemade condensed milk!
  • Butter – melts down with the sugar to create a soft, creamy texture.
  • Desiccated coconut – a fine coconut that adds texture and flavour to the coconut ice. Not the same as shredded coconut! Shredded coconut is too big for this recipe.
  • Vanilla extract – to add a hint of vanilla flavour.
  • Red Food Colouring – if possible, look for natural food colouring. This will give half of the coconut ice its iconic pink colour.

How to Make Coconut Ice

Mix the condensed milk and 3 tablespoons of water in a small bowl.

Place the powdered sugar, butter, and condensed milk in a small saucepan. Heat gently over low heat, stirring constantly, until the butter melts. This process takes about 5-10 minutes.

Remove from the heat. Add the coconut and vanilla extract and beat until the mixture thickens up.

Divide the mixture in half (I used a kitchen scale to divide the mixture evenly).

Pour half the mixture into a buttered 8×8-inch pan and spread it evenly.

Add 2 drops of red food colouring to the remaining half of the mixture and mix to combine. It will turn a lovely light pink colour. Spread this out evenly on top of the plain coconut ice layer.

Cover with cling wrap, then place in the fridge to cool and set for 3-4 hours.

Cut into 1″ (2.5cm) squares, then carefully remove each piece from the pan.

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Microwave Instructions

This recipe can also be made in the microwave!
1. Place powdered sugar into a large microwave-proof bowl. Add the butter on top.
2. Mix condensed milk and water together, then pour over the sugar and butter.
3. Microwave for 4 minutes or until the mixture is bubbly.
4. Remove from the microwave and add the coconut and vanilla. Mix to combine.
5. Divide the mixture in half (I used a kitchen scale to divide the mixture evenly). Pour half the mixture into a buttered 8×8-inch pan and spread it evenly.
6. Add 2 drops of red food colouring to the remaining half of the mixture and mix to combine. It will turn a lovely light pink colour. Spread this out evenly on top of the plain coconut ice layer.
7. Cover with cling wrap, then place in the fridge to cool and set for 3-4 hours.
8. Cut into 1″ (2.5cm) squares, then carefully remove each piece from the pan.

Test Kitchen Tips

  • Keep the stove top temperature low to prevent burning.
  • Use butter to grease the pan. Baking paper will not work, as the mixture is too thick to spread easily.
  • Leave to get cold before cutting into the coconut ice.
  • Use a butter knife to help push the coconut ice out of the buttered pan.
  • Store in an airtight container in the refrigerator.
  • Freeze the coconut ice wrapped in waxed paper, then in a ziplock bag for up to 6 months.

Did you make this recipe and love it? If so, please leave a review below to let others know it’s delicious! Thank you!

Coconut Ice Recipe

This old-fashioned coconut ice recipe is creamy and coconutty, melting in your mouth with every bite. Made in just a few minutes, this sweet holiday treat is super quick and easy to whip together.
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Prep Time 12 minutes
Cook Time 10 minutes
Chilling time 3 hours
Total Time 3 hours 22 minutes
25 serves

Ingredients
  

  • 4 cups powdered sugar (icing sugar UK/NZ), 530g
  • ½ cup butter chopped into cubes, 100g
  • ¼ cup condensed milk 75g
  • 3 tablespoons water
  • 1 ½ cups desiccated coconut 125g
  • 1 teaspoon vanilla extract or essence
  • 2 drops red food colouring

Instructions
 

Stovetop Instructions

  • Mix the condensed milk and 3 tablespoons of water in a small bowl.
  • Place the powdered sugar, butter, and condensed milk in a small saucepan. Heat gently over low heat, stirring constantly, until the butter melts. This process takes about 5-10 minutes.
  • Remove from the heat. Add the coconut and vanilla extract and beat until the mixture thickens up.
  • Divide the mixture in half (I used a kitchen scale to divide the mixture evenly).
  • Pour half the mixture into a buttered 8×8-inch pan and spread it evenly.
  • Add 2 drops of red food colouring to the remaining half of the mixture and mix to combine. It will turn a lovely light pink colour. Spread this out evenly on top of the plain coconut ice layer.
  • Cover with cling wrap, then place in the fridge to cool and set for 3-4 hours.
  • Cut into 1" (2.5cm) squares then carefully remove each piece from the pan.

Microwave Instructions

  • Place powdered sugar into a large microwave-proof bowl. Add the butter on top.
  • Mix condensed milk and water together, then pour over the sugar and butter.
  • Microwave for 4 minutes or until the mixture is bubbly.
  • Remove from the microwave and add the coconut and vanilla. Mix to combine.
  • Divide the mixture in half (I used a kitchen scale to divide the mixture evenly). Pour half the mixture into a buttered 8×8-inch pan and spread it evenly.
  • Add 2 drops of red food colouring to the remaining half of the mixture and mix to combine. It will turn a lovely light pink colour. Spread this out evenly on top of the plain coconut ice layer.
  • Cover with cling wrap, then place in the fridge to cool and set for 3-4 hours.
  • Cut into 1″ (2.5cm) squares, then carefully remove each piece from the pan.

Notes

  • Keep the stove top temperature low to prevent burning.
  • Use butter to grease the pan. Baking paper will not work, as the mixture is too thick to spread easily.
  • Leave to get cold before cutting into the coconut ice.
  • Use a butter knife to help push the coconut ice out of the buttered pan.
  • Store in an airtight container in the refrigerator.
  • Freeze the coconut ice wrapped in waxed paper, then in a ziplock bag for up to 6 months.

Nutrition

Calories: 125kcal | Carbohydrates: 23g | Protein: 1g | Fat: 4g | Saturated Fat: 3g | Polyunsaturated Fat: 0.05g | Monounsaturated Fat: 0.2g | Cholesterol: 1mg | Sodium: 7mg | Potassium: 42mg | Fiber: 1g | Sugar: 22g | Vitamin A: 9IU | Vitamin C: 0.2mg | Calcium: 11mg | Iron: 0.2mg

Nutrition information is automatically calculated, so should only be used as an approximation.

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