In a medium bowl, mix together the sweetened condensed milk and vanilla extract until combined. Set aside.
After chilling, without shaking them, open the cans of coconut milk. Scoop out the solid coconut cream that should be on top, leaving the liquid behind. You will likely get ¼-1/2 of the can that is liquid. Save this to add to a smoothie or soup. Transfer the coconut cream to a mixing bowl. You can use a hand mixer or a stand mixer to whip the cream.
Using a stand mixer or hand mixer, whip the coconut cream until it's fluffy and you can see soft peaks.
Add a couple heaping spoonfuls of the whipped cream to the condensed milk mixture. Mix until combined, as the condensed milk is thick and this will help to loosen it up. Pour the condensed milk mixture into the large mixing bowl with the whipped coconut cream and fold it together using a spatula until as smooth as possible.
Pour the mixture into a freezer-safe container (a loaf pan is a perfect size) and place in the freezer for 2 hours.
During this time, if your coconut is not toasted, place ¼-1/2 cup of coconut on a sheet pan in a 350 F degree oven for 5 minutes just until it starts to brown. Take it out of the oven and set aside.
After 2 hours in the freezer, you can mix in toasted coconut (save some for the top!) - or caramel sauce, crushed cookies, chocolate chips, or any other options if you want. You can also just leave it and add as toppings.
Then place the ice cream back in the freezer for about another 3-4 hours or until completely frozen.
Remove the ice cream from the freezer about 5-10 minutes before serving. Scoop, top with toasted coconut and enjoy!