In a small bowl, combine the lukewarm coconut milk with the yeast and sugar. Let it stand for 10 minutes, or until the yeast becomes foamy.
In a large bowl, sift the all-purpose flour, then add the salt and shredded coconut.
Pour in the yeast mixture and coconut oil, then begin to knead the dough.
Knead the dough for about 10 minutes, until it becomes smooth and elastic.
Cover with a kitchen towel and let it rise in a warm place for about 1.5 hours, or until doubled in size.
Shape it into smaller loaves or one larger loaf, then place it on a baking sheet lined with parchment paper.
Cover again and let it rest for another 30 minutes.
Preheat the oven to 350°F (180°C) and bake the bread for 25-30 minutes, or until golden brown.
Let it cool completely on a wire rack, then slice and serve.
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