In a large mixing bowl, combine sweetened condensed milk, melted butter, and vanilla extract. Whisk them together until the mixture is smooth and well-blended.

Stir in the medium shredded coconut and confectioner’s sugar into the wet mixture. Mix until everything is thick and sticky.

While the mixture chills, take a few small bowls and divide the fine shredded coconut evenly among them. Add a few drops of liquid food coloring to each bowl.

Retrieve the chilled mixture and use a small cookie scoop or your hands to portion out 1½ teaspoon amounts. Roll each portion into smooth balls.

Take each rolled ball and gently roll it in your prepared colored coconut until fully coated.

Once all the tails are coated, transfer the tray to the refrigerator for about 1 hour.

After chilling, keep your Easter Bunny Coconut Tails in the refrigerator until it's time to serve.