In a large mixing bowl, whisk together sweetened condensed milk, melted butter, and vanilla extract until smooth and creamy.

Stir in the unsweetened medium shredded coconut and confectioner's sugar until fully incorporated, then chill for 15 minutes.

Divide fine shredded coconut into small bowls and add liquid food coloring to each to create pastel shades.

Scoop about 1½ teaspoons of chilled coconut mixture and roll into smooth balls.

Roll each ball in colored fine shredded coconut until fully coated, then set aside on a parchment-lined sheet.

Place the baking sheet in the refrigerator for about an hour to set the coconut tails.

Once set, enjoy your coconut tails straight from the fridge or let sit at room temperature for a few minutes before serving.