Preheat oven to 350 degrees F. Spread 1/4 cup coconut on a baking sheet and bake for 8-10 minutes, stirring once or twice. Remove from oven. In a medium bowl, whisk sugar and egg yolks. Chop chocolate and add to the top of a double boiler over simmering water. Stir chocolate until melted; remove from heat. In a small saucepan, mix together cream, coconut milk and vanilla. Bring cream mixture to a simmer just until you see whisps of steam. Remove from heat and add chocolate to cream mixture. Add hot cream mixture to egg mixture, stirring constantly. Pour custard equally into 4 ramekins. Place ramekins in a roasting pan and add hot water until it reaches halfway up the sides of the ramekins. Bake for 45 minutes. Remove from oven and remove ramekins from water. Let cool, then cover with plastic wrap and refrigerate. To serve, let sit out at room temperature and sprinkle tops with toasted coconut.