In a large mixing bowl, combine the sweetened condensed milk, melted butter, and vanilla extract. Whisk until smooth, about 2-3 minutes.

Stir in the medium shredded coconut and confectioner’s sugar until thick and sticky, about 4-5 minutes. Cover and refrigerate for 15 minutes.

Divide the fine shredded coconut into small bowls. Add liquid food coloring to each and mix thoroughly.

Once the mixture has chilled, scoop out 1½ teaspoon-sized balls. Roll each into a smooth ball.

Roll each ball in the colored shredded coconut until fully coated. Place on a parchment-lined baking sheet.

Transfer to the refrigerator and chill for at least 1 hour until firm.