In a large mixing bowl, whisk together the sweetened condensed milk, melted butter, and vanilla extract until well combined and smooth—this will take about 1-2 minutes.

Add the medium shredded coconut and confectioner’s sugar to the mixture, stirring until everything is thoroughly mixed and sticky.

Cover the bowl with plastic wrap and refrigerate the mixture for about 15 minutes to help it firm up.

Divide the fine shredded coconut into several small bowls and add a few drops of liquid food coloring to each bowl, mixing until evenly tinted.

Scoop out about 1½ teaspoons of the chilled mixture and roll it into a ball using your hands. Repeat until all the mixture is rolled into small balls.

Gently roll each coconut ball in the colored coconut until completely coated.

Place each coated ball on a parchment-lined baking sheet, ensuring they don’t touch, and refrigerate for 1 hour or until firm.

Keep chilled until ready to serve. Enjoy the delightful flavors and smiles they bring!