Combine first 3 ingredients in a large saucepan. Bring to a boil over medium-high heat, stirring frequently. Combine sugar and egg yolks in a small bowl. Gradually add about one-fourth hot milk mixture to eggs, stirring constantly with a whisk. Add to remaining hot milk mixture, stirring constantly. Remove from heat; stir in 1/2 cup coconut and next 5 ingredients. Cool completely, stirring occasionally. Cover and chill at least 1 hour.

Pour mixture into the freezer can of a 4-quart ice cream freezer, and freeze according to manufacturer's instructions. Spoon ice cream into a freezer-safe container. Cover and freeze at least 2 hours or until firm. Sprinkle each serving with toasted coconut.