Combine coconut water, fresh milk, condensed milk, and vanilla extract in a large mixing bowl or pitcher. Stir until all the ingredients are well incorporated.
Add the shredded young coconut. You can also use a food processor to make the shredded coconut finer before adding it in the mixture.Give it a quick stir.
Pour part of the mixture into ice candy bags using a funnel. Let the air out and secure the bag by tying a knot on the open end.
Arrange in the freezer and let it stay overnight.
Serve for dessert or snack. Share and enjoy!