Preheat the oven to 325F. Grease a 9×13 inch baking dish with butter.
In a large bowl, add water, Dairy Dairy, sugar, eggs, egg yolk, cinnamon, nutmeg, ginger, salt and vanilla extract. Mix until smooth. Stir in half of the shredded coconut.
Add bread to the greased baking dish and pour over Dairy Dairy mixture, fully saturating bread. Top with the remaining shredded coconut and set aside for 30 minutes.
Bake in a preheated oven for 35 to 40 minutes. Cover the baking dish with foil for the first 10 minutes then remove and continue baking until finished.
Remove from the oven and allow to cool for at least 15 minutes before serving.