Preheat oven to 425 degrees. Toasts 1/2 cup coconut; set aside. Bake pastry shell 8 minutes; cool slightly.
Meanwhile in medium bowl, beat eggs. Add sweetened condensed milk, water, vanilla, salt and nutmeg; mix well. Stir in remaining 1/2 cup coconut. Pour into prepared pastry shell. Sprinkle with toasted coconut. Bake 10 minutes. Reduce oven temperature to 350 degrees. Bake 25 to 30 minutes longer or until knife inserted comes out clean. Cool. Chill, if desired. Refrigerate leftovers.
Omit coconut. Proceed as above.