Preheat oven to 325° F. Line sheet tray with parchment paper.
Spread coconut into a thin and even layer on prepared sheet tray. Bake for 10 minutes. Rotate pan and stir coconut. Continue to bake at 5 minute intervals, rotating the pan and stirring the coconut until golden in color. Once toasted, let cool to room temperature.
In a medium sauce pan, add sugar. Cook over medium high heat until sugar begins to melt. Once sugar begins in liquefy, reduce heat to medium or medium-low. Do not over agitate the sugar, but swirl the pan once in a while to make sure sugar melts evenly. Continue to melt the sugar until liquid is amber brown and aromatic.
Add butter to sauce pan. Whisk until all the butter has melted.
Remove sauce pan from heat and slowly add the heavy cream. Continue to whisk until cream and sugar mixture are homogeneous. Be careful, once you add the cream, the sugar mixture will bubble and rise quite a bit. Be sure the sauce pan is away from heat before you add the cream.
Continue to whisk until caramel is thick and smooth. Let cool until slightly warm to the touch. Reserve about ⅓ cup of the caramel in a separate bowl. Then add the salt and toasted coconut. Fold into the coconut until thoroughly distributed.