Preheat oven to 350 degrees. Spread the coconut on an even layer on a baking sheet and bake for 10 minutes, or until golden brown. Stir the coconut every 2 minutes while baking to prevent burning.
Remove the toasted coconut from the oven and transfer to a saucepan with the remaining ingredients. Bring to a low boil on medium heat and simmer for about 5 minutes, do not stir! Remove from the heat and let cool and steep for 2 hours.
Once cool, strain the syrup through a fine sieve or cheesecloth. Store refrigerated in a sealed container for 1 week or freeze for up to 1 month.