Preheat oven to 350. Line 8x8 baking dish with parchment paper. Set aside.
Spread coconut flakes evenly on rimmed baking sheet and toast in oven, about 5 minutes. Flakes should be beautifully brown and smell delicious. Don't walk away from your oven though, as flakes can go from toasted to burned quickly! Remove from oven and let cool.
If coconut flakes are large, blitz in food processor.
In medium saucepan over medium high heat, bring coconut milk, sugar and coconut oil to a simmer, stirring often.
Remove from heat and add in chocolate chips. Stir until chocolate is melted and mixture is beautifully smooth. Pour into prepared pan and refrigerate for 4-8 hours (the longer the better).
To make truffles: line baking sheet or plate with parchment paper to set the finished truffles on. Spread toasted coconut evenly in a shallow container. If chocolate mixture becomes too warm during truffle forming, return to fridge to allow it to chill again.
Portion about a tablespoon or so (however large you want your truffles) of the chocolate mixture in your hand. Roll into a ball. Roll the ball in the toasted coconut and place on prepared tray. Once all truffles are formed, return to fridge and let chill. Refrigerate until ready to serve. Enjoy!