If using whole coconut to make the flakes: open the coconut. Bake the two halves (still in the shell) at 400 for about 20 minutes. The meat of the coconut will start peeling off of the shell. Pry all the meat from the shell and peel off the outer, brown skin with a potato peeler. Shred coconut on a large grater. Set the desired amount aside in a mixing bowl. You can freeze the remaining coconut.
In a small sauce pot, combine coconut milk, sugar and vanilla. Heat it up but don't boil.
Pour hot coconut milk mixture in a bowl with coconut flakes. Mix well and let it stand to cool completely.
Once it's cooled, divide the mixture among the popsicle molds and try to get even amount of coconut shavings and milk.
Cover each mold with saran wrap and poke popsicle stick through. Freeze for at least 4 hours.