Measure 1/4 cup flaked coconut and set aside.
In a bowl pour hot milk over remaining coconut; let stand 30 minutes.
Strain through cheese cloth, squeezing out excess liquid.
In a saucepan combine cornstarch and sugar.
Stir in the hot coconut-flavored milk.
Cook, stirring constantly, till thickened and bubbly.
Pour into a buttered 10x6x2-inch dish.
Sprinkle with 1/4 cup reserved flaked coconut.
Chill till firm.