Combine pudding mix, milk, and 1/2 cup (125 mL) of the toasted coconut in a saucepan.
Cook and stir until mixture just comes to a boil.
Pour a small amount of mixture into beaten egg yolk; then return to saucepan.
Cook until mixture comes to a full boil.
Cover with wax paper and allow to cool slightly.
Spoon into six dessert dishes.
Top with remaining toasted coconut.
Refrigerate to chill thoroughly.