2 c. granulated sugar
1 c. fresh coconut juice or 1/2 c. water and 1/2 c. milk
6 tbsp. butter
1 grated coconut or 3 (6 oz.) pkg. frozen coconut
3 egg whites
1 tsp. vanilla extract

In a saucepan, heat sugar, liquid and butter until slightly thickened, 5 or 6 minutes after coming to a boil. Cool thoroughly in the pan. Add grated coconut.

With an electric mixer, beat egg whites until stiff. Mix thoroughly with coconut mixture. Return to medium heat and cook until it begins to "burp". Continue cooking for 3 to 4 minutes, stirring frequently. Stir in vanilla extract. Ladle on cake while icing is hot.