Spread the shredded coconut in an even layer on a parchment lined baking sheet.
Toast for 5-10 minutes, tossing every couple minutes until golden brown.
Remove from the oven and let cool to room temperature.
Reduce the heat of the oven to 350°F. Spray donut pan with non-stick spray and set aside.
In a large bowl, whisk together the melted coconut oil, sugar, and brown sugar until smooth. Add in the eggs, coconut extract, and vanilla and whisk until fully incorporated.
In a separate bowl, sift together the flour, baking powder, and salt.
Mix half of the dry ingredients into the egg mixture, then add in the coconut milk. Once incorporated, add in the remaining dry ingredients and mix until just combined.
Transfer the batter to a piping bag, then cut of the tip and pipe into the donut pan, filling about halfway. You can also just spoon the batter into the pan if desired.
Bake at 350°F for 8-10 minutes or until a cake tester comes out clean. Invert the donut pan on a cooling rack, and the donuts should slide right out!
While the donuts are cooling, make the coconut glaze!
In a small bowl, make the glaze by whisking together the powdered sugar, coconut oil, vanilla, and coconut extract. Add in the coconut milk 1 teaspoon at a time until your desired consistency is reached. It should be thick but still just barely runny.
Dip the coconut donuts into the glaze and place back on the cooling rack so any excess can drip off.
Immediately sprinkle with shredded toasted coconut so that it sticks to the glaze properly!
Notes
These donuts are best eaten the same day, but will keep in an airtight container at room temperature for up to 3 days.This recipe makes 12 large donuts, or 24 mini donuts!