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Line a rimmed baking sheet with parchment paper and set it near the stove. Spread the shredded coconut in an even layer in a dry medium heavy-bottomed saucepan over medium heat, stirring frequently, until golden and fragrant, about 3–4 minutes. Watch closely, as the coconut can go from golden to burnt quickly. Transfer the toasted coconut to a small bowl and set aside; wipe out the saucepan.
Combine the sugar, corn syrup, and water in the same saucepan over medium-high heat, stirring just until the sugar dissolves. Clip a candy thermometer to the side of the pan, then cook without stirring until the syrup reaches 300°F (149°C), the hard-crack stage, about 10–12 minutes. The syrup will turn a pale amber color.
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