1) Take a saucepan and combine in it butter, milk and sugar.
2) Simmer mixture to soft-ball stage or until mixture registers 238° F on a candy thermometer.
3) Remove from heat. Stir in vanilla and coconut.
4) Beat the mixture until creamy.
5) Take a greased 9 inch pan and pour mixture in it.
6) Allow the mixture to stand for about 30 minutes.