Introduction to Coconut Milk Powder Coconut milk powder is a versatile and popular ingredient used in a variety of recipes, from curries and stews to smoothies and baked goods. It is made by dehydrating and spray-drying the liquid from grated coconut meat, resulting in a fine powder that can be easily reconstituted with water. The powder has a creamy texture and coconut flavor, making it a staple in many cuisine styles, including Indian, Southeast Asian, and Caribbean.