First cut open the coconut in the middle and drain coconut water in a bowl - I used chopped coconut pieces as I had it in stock, but you use grated coconut too. Measure and take 1 heaped cup coconut to a blender.
Now add 1 cup water to it.
Blend well for few seconds.
The mixture will be slightly thick and moist.
Now transfer this coconut mixture to a fine holed strainer placed over a bowl and press it with a spoon / spatula till all the milk is drained.You can use muslin cloth to drain too.
Now the extracted milk is the first coconut milk or thick coconut milk.
Press and squeeze until all the milk is extracted and the mixture becomes dry. You will see at one point while pressing the milk will stop coming so this indicates you can stop here.
Thick coconut milk is ready. This is suitable to be added only at the last stage and cooking can be done only for a minute or 2 after thick coconut milk is added.
If you want a thin version then again add this coconut mixture and add 1/2 cup water, blend and then strain to get the 2nd thin coconut milk.
Now add 1 and 1/2 cups of water to it.
Blend well for few seconds.
As you can see the mixture is a bit runny.
Transfer the mixture to the same strainer.
Press well to extract coconut milk.
This is second coconut milk or thin coconut milk. This is suitable to add for cooking vegetables, meat etc, can be used to boil too.
You can stop here or again add water and repeat the process to make very thin coconut milk too.
Thick and thin coconut milk is ready for use.