In a large bowl, mix the flour, sugar, baking powder, salt, and shredded coconut.

In a separate bowl, whisk the coconut milk, oil, egg, and vanilla. Add the wet ingredients to the dry ingredients and stir until just combined. Allow the mixture to sit for 5 minutes or so while you preheat and grease a griddle. Note: if the batter seems too thick or thin you can add a tablespoon or so of flour (to thicken) or coconut milk (to thin). Be careful not to overmix.

Using a ⅓ or ½ measuring cup, pour the batter onto a greased griddle set at medium-low heat. Cook on one side until bubbles form evenly, then flip and cook on the other side until golden brown. Repeat with remaining batter.

In a small saucepan, whisk all ingredients except vanilla extract. Simmer for 10-12 minutes, until thickened slightly and completely combined. Whisk in vanilla extract. Store in the refrigerator, whisking to thin it out right before serving.