Food Processing | The easiest way to make coconut milk | Coconut milk, derived from coconut meat, makes an excellent substitute for cow's milk. An essential ingredient in many Indian and Thai dishes, coconut milk has risen in popularity and usage in the U.S. As of 2011, the increased demand for coconut milk and a devastating harvest has made coconut milk an expensive and rare find in some Western countries. Fortunately, coconut milk is very easy to make at home. The first thing you have to do to make coconut milk is preparing all things you need : 1 cup dried coconut meat (unsweetened), 2 cups hot water, blender, strainer and bowl.