CHAOKOH COCONUT MILK POWDER 2.20OZ Coconut milk powder is an ingredient in most Southeast Asian cooking and is not the liquid inside a coconut. It is prepared by soaking the grated flesh of a coconut in hot water or scalded milk, then straining the combination. Coconut milk is classified as thick, thin, or coconut cream. Thick coconut milk is the result of the first soaking and squeezing. If this milk is refrigerated it separates, and the top layer is the cream. Thin coconut milk is what is produced when one steeps the coconut meat a second time and then strains.