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Oven drying
Preheat the oven to 350 degrees F (177 degrees C).
Drill the coconut through the eyes using a 3/8 inch (9.5 mm) drill bit. Pour the coconut water into a dish or cup. The water should be clear. Cloudy or colored water means the coconut is bad. You can discard the water or drink it if desired.
Put the coconut directly on the rack in the preheated oven. Heat the coconut for 20 minutes.
Remove the coconut from the oven and wrap it in a towel, creating a sack. Hold the end of the towel to keep the coconut stable and hit the coconut several times with a hammer to break it up.
Pry the flesh out of the coconut with a strong knife, such as a paring knife. The flesh may have a thin brown skin attached from where it was touching the shell. Remove the skin with a vegetable peeler.
Reduce the oven temperature to 250 degrees F (121 degrees C).
Shred the coconut pieces in a food processor and dry them for 10-15 minutes. Spread the coconut pieces on a cookie sheet in an even layer. Place the cookie sheet in the oven and dry the coconut for 10-15 more minutes.
Let the dried coconut cool and transfer it to an airtight container. Store the coconut in a cool, dry place, preferably your fridge. Your shredded coconut can be safely stored for 6 to 8 months.
Dehydrating
Bust up the coconut shell with a hammer.
Peel the fleshy innards out of the coconut.
Use a cheese grater to grate the flesh. Rub the flesh against the coarse side of the grater, taking care not to cut yourself. If you want the dried coconut to be a little sweet, sprinkle 1-2 tsp of sugar on it.
Dehydrate the shredded coconut for about 8 hours at 135 °F (57 °C).
Bag the dried coconut. Use an airtight container or an airtight resealable bag. Store the coconut in a cool, dry place (you can also put it in the fridge). Shredded dry coconut will stay fresh for 6 to 8 months.
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