In a medium sauce pan, combine the water, sugar, vanilla bean paste, and salt. (If you are using vanilla extract, do not add it yet or it will cook off and you will lose most of the flavor).
160 ml water, 125 g caramel sugar, 5 ml vanilla bean paste, 5 g fine salt
Stirring constantly over medium heat, bring the mixture to a boil. Cook only until the sugar is fully dissolved, about a minute.
Remove from the heat and stir in the coconut flakes until completely coated with the caramel syrup mixture. (If you are using vanilla extract, this is the time to add it) Set aside for about an hour to fully absorb the syrup.
285 g coconut
Preheat your oven to 250° F. Line a large rimmed baking sheet with parchment paper. Using a spatula, spread the caramel coconut mixture in an even layer over the parchment. You want the coconut flakes separated as much as possible and as close to a single layer as possible.
Place the pan in the oven for about an hour. Stir and further separate the coconut flakes occasionally during the cooking time, maybe once every 15 minutes or so. The coconut will get light, crispy and have a dry matte finish when it is done. This may take longer than an hour depending on the humidity in your kitchen and the initial moisture content of your coconut. When the coconut is done, turn off the oven and leave the pan in the oven to cool for another 1-2 hours.
When the caramel coconut chips are fully cooled, transfer to an air tight container and store in your pantry.