Toast the coconut in a dry pan over medium heat until golden and fragrant (watch closely– It crisps up quickly). Set a pinch aside for the garnish.
In a saucepan, combine sugar and water, heating until dissolved.
Add toasted coconut, stir, and remove from heat.
Let steep for about 20–30 minutes, and fine strain out the coconut solids.
Allow the syrup to cool completely before using.
Store the remainder in an airtight container (like a Mason jar) for up to 2 weeks in the fridge. Tip: You’ll see separation from being kept cold, so just give the jar a good shake before using the syrup.