Preheat your oven to 350°F (175°C) and spread the shredded coconut evenly on a baking sheet. Toast in the oven for about 5-7 minutes, stirring halfway through, until the coconut turns a golden brown.

In a microwave-safe bowl, combine the chocolate chips and a pinch of salt. Melt the chocolate in the microwave in 30-second intervals, stirring until fully smooth and melted.

In a large mixing bowl, combine the toasted coconut, melted chocolate, sweetened condensed milk, caramel sauce, and vanilla extract. Mix well.

Roll the mixture into 1-inch balls and place each ball onto a parchment-lined baking sheet.

Refrigerate the formed truffles for at least 30 minutes to firm up.

Optionally, drizzle melted chocolate over the truffles or dip them entirely in chocolate.