Sweet coconut buns with a fragrant, buttery coconut filling are a beloved bakery treat. A family favorite with tropical, fresh flavor.
In a large bowl, combine milk and butter and gently warm until the butter is melted but not hot; add sugar and stir to dissolve. Let cool to lukewarm.
Stir in the instant yeast, then add the egg and mix until smooth. Gradually add flour and salt to form a soft dough, kneading for 8–10 minutes until smooth and elastic.
Cover the dough and allow it to rise in a warm place for about 1 hour, until doubled.
Mix the shredded coconut, softened butter, powdered sugar, vanilla extract, and pinch of salt in a separate bowl to make the fragrant filling.
Divide the dough into 6 pieces, flatten each, and fill with the coconut mixture. Seal and shape into buns; place on a lined baking sheet. Let rise for 30 minutes.
Preheat oven to 350°F. Bake buns for 18–22 minutes, until golden brown. Cool briefly before serving.