Preheat the oven to 350 degrees.
Line a rimmed baking pan with a silpat mat or cloth towel (this will prevent the ramekins from sliding around).
Place six or seven ramekins on the baking sheet.
Combine the milk, coconut milk, and coconut together in a saucepan over medium high heat. Bring to a boil then turn the stove off.
Let the mixture steep on the stove top for 15 minutes.
Combine the sugar, egg yolks, and egg together in a bowl; whisk until well combined.
Once the coconut mixture has finished steeping, whisk a small amount slowly into the egg mixture to temper.
Add the tempered egg mixture to the coconut mixture; whisk until well combined.
Add the vanilla extract and coconut extract; mix well.
Line a fine mesh strainer with cheese cloth and place over a mixing bowl.
Pour the coconut/egg mixture through the cheesecloth lined strainer to strain the liquid.
Squeeze the cheese cloth once it is completely strained to get the last bits of liquid.
Discard the cheesecloth and coconut.
Pour the custard evenly in the 6-7 ramekins.
Place into the oven and pour boiling water into the baking pan, being careful not to splash water into the ramekins, until the water reaches two thirds of the way up the sides of the ramekins.
Bake until the centers of the custards are just barely set and are no longer sloshy.
A digital thermometer inserted in the centers should read 170-175 degrees, 30-35 minutes.
Begin checking the temperature about 5 minutes before the recommended time.
Transfer the ramekins to a wire rack; cool to room temperature, about 2 hours.
Set the ramekins on a rimmed baking sheet, cover tightly with plastic wrap, and place into the refrigerator for at least 3-4 hours.
Uncover the ramekins, if condensation has collected on the custard surface, place paper towel on the surface to soak up the mixture.
Sprinkle the top of each ramekin with about a teaspoon of turbinado sugar; tilt and tap each ramekin for even coverage.
Toast some shredded coconut in a dry skillet over medium heat for a couple of minutes, stirring often, until golden brown; set aside.
Ignite the torch and caramelize the sugar carefully.
Refrigerate uncovered, to re-chill if desired, 20-30 minutes (but no longer), serve topped with toasted coconut. Enjoy!