Set the cream cheese out at room temperature for 30–60 minutes, until it feels soft when pressed with a finger but not melted. This helps it beat smooth and prevents lumps.
8 oz cream cheese
Add 1/2 cup of the shredded coconut to a dry skillet over medium heat. Stir frequently for 3–5 minutes, until golden and fragrant. Transfer to a plate and let cool completely so it stays crisp.
1 1/2 cups sweetened shredded coconut
In a large mixing bowl, beat the softened cream cheese and 1 cup powdered sugar on medium speed with a hand mixer (or stand mixer with paddle) for 2–3 minutes, until very smooth and fluffy. Scrape down the sides of the bowl as needed.
8 oz cream cheese, 1 cup powdered sugar
Sprinkle in the instant coconut cream pudding mix, 1 teaspoon vanilla extract, coconut extract (if using), and sea salt. Beat on low speed until fully combined and thick.
3.4 oz instant coconut cream pudding mix, 1 teaspoon vanilla extract, 1/2 teaspoon coconut extract, 1/4 teaspoon fine sea salt
With the mixer on low, slowly pour in the cold coconut milk or half-and-half, a few tablespoons at a time, mixing just until the mixture is smooth and starts to thicken. It should look like a loose pudding at this stage.
1 cup canned coconut milk or half-and-half
Fold 1 cup of the sweetened shredded coconut into the pudding mixture using a spatula, leaving the remaining 1/2 cup for topping. This adds texture and boosts coconut flavor.
1 1/2 cups sweetened shredded coconut
In a separate chilled bowl, whip the cold heavy cream, 2 tablespoons powdered sugar, and 1/2 teaspoon vanilla extract on medium-high speed until soft-to-medium peaks form. Do not overwhip, or the cream will become grainy.
1 cup heavy whipping cream, 2 tablespoons powdered sugar, 1/2 teaspoon vanilla extract
Gently fold the whipped cream into the coconut pudding mixture in 2–3 additions, using a light hand and sweeping the spatula from the bottom up. This keeps the dip fluffy and airy.
1 cup heavy whipping cream
Transfer the coconut cream pie dip to a serving bowl, cover, and refrigerate for at least 30–60 minutes, or up to 24 hours. Chilling allows the dip to thicken and the flavors to meld.
Right before serving, sprinkle the cooled toasted coconut over the top of the dip. Optionally add extra shredded coconut, crushed graham crackers, or a drizzle of chocolate sauce. Serve with graham crackers, vanilla wafers, shortbread, pretzels, strawberries, pineapple, and apple slices arranged around the bowl for dipping.
1 1/2 cups sweetened shredded coconut, graham crackers, vanilla wafers, shortbread cookies, pretzels, sliced strawberries, pineapple chunks, apple slices