Toast the coconut: To a small frying pan over medium heat, add the coconut. Cook, stirring often, until the coconut begins to become fragrant and golden, about 2-3 minutes.
To make the toasted coconut syrup: Transfer the toasted coconut to a small saucepan, along with the sugar, honey, and water. Turn heat to medium high and bring the mixture to a simmer, making sure the sugar is melted. Remove the pan from the heat, cover, and let sit for 20 minutes. After 20 minutes, strain the syrup through a fine mesh sieve. The syrup can be kept in a sealed container in the refrigerator until ready to serve.
To assemble the iced coffee: Fill two glasses with ice. Pour 6 ounces of cold coffee into each glass. Stir in 1-2 tablespoons of toasted coconut syrup into each glass, or use more/less to taste. Add coconut milk or whole milk as desired. Serve promptly.
Notes
Nutrition is for one serving of iced coffee without milk.