Makes 4 cups
1 (8-ounce) package cream cheese, softened
1/2 cup butter or margarine, softened
3 tablespoons milk
1 teaspoon vanilla extract
1 (16-ounce) package powdered sugar, sifted
1 (7-ounce) package sweetened flaked coconut
Beat cream cheese and butter at medium speed with an electric mixer until creamy; add milk and vanilla, beating well. Gradually add sugar, beating until smooth. Stir in coconut.