In a medium saucepan over medium-low heat, combine butter, sweetened condensed milk, shredded coconut, and coconut milk. Stir continuously for about 10 minutes until the mixture becomes hot and begins to thicken.

Continue to stir for another 5-10 minutes until the mixture thickens further, achieving a custard-like consistency.

Remove the pan from heat and gradually stir in the heavy cream, ensuring a smooth and creamy texture.

Allow the pudding to cool in the saucepan for 10-15 minutes.

Pour the cooled pudding into individual serving glasses or bowls, cover with plastic wrap, and refrigerate for at least 2 hours.

Once set, garnish with toasted coconut flakes and a maraschino cherry before serving.