Break coconut open with the blunt side of a butcher knife (note: have a bowl nearby to collect the coconut water). Hold the knife in one hand then hold the coconut in another hand. Hit the coconut with the knife several times around its perimeter until it opens up. Pour coconut water into bowl and set aside.
Place the opened coconut in a microwave and heat on high for 2 minutes. Alternately, bake it in an oven at 350 degrees F or 180 degrees C for 15 minutes. This process makes separating the coconut flesh from the shell super easy.
Use a pairing (small) knife to lift the flesh from the shell.
Shred the coconut using the small shredding side of a box grater. Alternately, use the shredding function of your food processor.
Place water and sugar into a non-stick pan on medium heat and stir until sugar is dissolved. Add in shredded coconut and mix well to ensure that it absorbs all of the sugary water. Keep stirring until the coconut turns a beautiful golden brown color. This takes about 15 minutes.
Spread on a tray to cool then enjoy!