In a large bowl, whisk together sweetened condensed milk, melted butter, and vanilla extract until smooth and well-blended.

Add medium shredded coconut and confectioner’s sugar, stirring vigorously until well combined.

Cover the bowl with plastic wrap, and refrigerate the coconut mixture for about 15 minutes.

While the mixture chills, divide fine shredded coconut into separate bowls and add liquid food coloring, mixing until evenly coated.

Once the mixture has chilled, use a small cookie scoop to portion out balls and roll each scoop into smooth rounds.

Roll each ball in the colored coconut, pressing to adhere.

Arrange the coated balls on a parchment-lined baking sheet and refrigerate for about 1 hour.

Keep the coconut tails chilled until serving; let sit at room temperature for a few minutes before enjoying.