PLACE sugar in small saucepan. Cook over medium heat, without stirring. When sugar begins to melt, gently shake saucepan until sugar is completely melted and caramel-colored, about 10 minutes. Working quickly, carefully pour into an 8-inch round baking pan. Using potholders, tilt pan to completely coat bottom.

HEAT oven to 325°F. Whisk eggs in large bowl. Whisk in sweetened condensed milk, coconut milk, water, coconut extract and salt. Set prepared round pan in 13 x 9-inch baking dish on oven rack. Pour egg mixture into round pan. Fill larger baking dish with 1 inch deep boiling water. Bake 55 to 60 minutes or until custard is set but not completely firm. Carefully remove pan from hot water. Cool on wire rack 1 hour. Cover and chill several hours, preferably overnight.

To serve: INVERT onto rimmed serving plate. Cut into wedges and place on individual serving plates. Garnish with whipped cream. Sprinkle with toasted coconut.