Preheat oven to 325 degrees.
Spread coconut on a cookie sheet and bake for 3 minutes.
Remove from oven, stir, then cook again for 3 minutes or until coconut is lightly browned.
Using a double boiler, bring water to a boil, then turn down to simmer.
Add 1/2 a bag of Lily's Chocolate Chips and butter in a double boiler and stir until completely melted.
Add toasted coconut to melted chocolate. Unsweetened coconut varies in shape and size so it may take a little less than the amount I have listed. Keep adding coconut until it is completely coated with the melted chocolate.
Spoon approx a 1/2 to 3/4 a tablespoon at a time on parchment paper.
Set in freezer for 10 minutes, then store in the fridge.