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

Gently fold in the medium shredded coconut and confectioner’s sugar into the creamy mixture until fully incorporated.

Cover the bowl with plastic wrap and place it in the refrigerator for about 15 minutes.

While the mixture is chilling, divide the fine shredded coconut into small bowls and add liquid food coloring to each bowl.

Once the mixture has chilled, portion out about 1½ teaspoons and roll into smooth balls.

Roll each ball in the colored coconut until fully coated.

Transfer the tray of coated bunny tails to the refrigerator and let them chill for about 1 hour.

Serve chilled on a festive platter.