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In a saucepan, mix 6 3/4 cups milk and 2 1/2 cups sugar. Simmer until milk is reduced. Set aside.
Chop coconuts into small cubes and grind with remaining 6 3/4 cups milk. Bring to a boil. Remove from heat and allow to cool. Combine coconut milk and sugared milk; beat in yolks until well mixed.
Preheat oven to 350 degrees.
In a small saucepan, melt 3/4 cup sugar with water until it forms a caramel texture. Use this to coat a round mold. Fill mold with coconut milk, sugared milk and yolks. Set mold in large pan half-filled with water and place in oven.
Flan is done when an inserted bamboo skewer comes out clean. Cool in refrigerator for at least 3 hours.
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