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Toast the shredded coconut in a small dry skillet over medium-low heat, stirring frequently, until golden and fragrant, about 3–4 minutes. Watch closely, as it can brown quickly. Transfer to a shallow bowl and let cool completely.
Place the chocolate chips and coconut oil in a heatproof bowl. Heat the coconut milk in a small saucepan over medium heat until it just begins to simmer around the edges, about 3–4 minutes — do not boil.
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