Line an 8x8 square dish with aluminum foil and spray VERY lightly with non-stick spray.

Add coconut to a cold, dry (meaning do not add oil, butter or cooking spray) frying pan and heat over medium low heat. Stir frequently until the coconut is golden brown, about 5-10 minutes. Transfer coconut to a bowl and set aside and remove 1 tbsp for topping the fudge.

Add chocolate chips and sweetened condensed milk to a medium sized pot. Heat over medium heat and stir frequently until the chocolate is completely melted. Remove from heat.

Stir in coconut (except for 1 tbsp.) and the vanilla extract.

Transfer fudge to the prepared dish and smooth out the top with a spatula.

Top fudge with the remaining 1 tbsp. toasted coconut. Use your hand to lightly press the coconut onto the fudge so it will set.

Refrigerate at least 2 hours, un-covered, before cutting.

Makes approx. 36 pieces.