Peel the soaked coconut. In blender put all the ingredients except sugar and blend well
Cook the mixture in pan over medium high heat while stirring continuously till the mixture comes to boil.
Lower the flame and cook till the mixture is thick or according to the desired consistency. It should be such that it should be able to set in the dish. Stir occasionally in this step.
Now add sugar and cook till sugar is well dissolved and mixture is thick. If the mixture gets very thick then you can add more milk.