Line your baking dish with parchment paper, leaving overhang for easy removal.
Spread the shredded coconut evenly on a baking sheet and toast in the oven at 180°C (350°F) for 5-7 minutes, stirring halfway through until golden and fragrant. Let cool slightly.
In a small saucepan, melt the coconut oil over low heat until just liquid and fragrant, then remove from heat.
In a mixing bowl, combine the toasted coconut, sweetened condensed milk, honey, vanilla extract, and a pinch of sea salt. Stir vigorously until the mixture becomes sticky and evenly coated with all ingredients.
Pour the melted coconut oil into the mixture and fold everything together until the mixture is cohesive and sticky.
Transfer the mixture to your prepared baking dish. Use a spatula or damp hands to press it firmly and evenly into the dish, smoothing the top for a flat surface.
Cover the dish with plastic wrap or foil and refrigerate for at least 2 hours, or until the mixture is firm and set.
Once chilled, lift the set mixture out using the parchment overhang. Place on a cutting board and cut into 8-10 bars with a sharp knife, wiping the blade clean between cuts for neat edges.
Allow the bars to sit at room temperature for 10 minutes to soften slightly, enhancing their chewiness and flavor.
Enjoy your chewy, toasted coconut bars! Store leftovers in an airtight container in the fridge for up to a week or freeze for longer storage.