In a medium saucepan, heat the water until it begins to steam and simmer (you can also use a kettle for this step).
Add the water to a blender along with the shredded coconut.
Puree the mixture for 30-60 seconds, then strain into a bowl through a cheesecloth or nut milk bag, squeezing to extract all of the liquid.
Use immediately, or store in an airtight container for up to 4 days in the refrigerator. Homemade coconut milk can also be frozen for up to 3 months.
Notes
This coconut milk recipe yields approximately 1 1/2 cups and can be scaled up or down as needed. Separation will occur as the coconut milk settles; simply shake or stir before serving.