Crack open the coconut, pour out the coconut water (use it in a smoothie!) and remove the flesh (white part) from the coconut shell with a knife.
Using a sturdy vegetable peeler or a sharp knife, peel the brown skin from the coconut flesh.
Grate the coconut flesh using a fine grater, or chop the coconut meat into small pieces and pulse in a blender, spice grinder, or food processor until it has a fine crumb consistency.
Spread the grated coconut in a thin layer on a baking sheet lined with parchment paper.
Bake for 5-10 minutes or until the coconut is crisp and dry. Be sure to stir the coconut every few minutes to ensure even drying.
Remove the coconut from the oven and let cool.
Store the desiccated coconut in an airtight container in the refrigerator for up to one year.