Place 2 cups desiccated coconut in a deep pan. Place the pan over low flame. Lightly toast the coconut. Stir constantly to avoid burning. (Note: do not allow the coconut to change color).

Pour in the condensed milk. Mix well. Stir constantly for 20 minutes or until the mixture becomes really thick and leaves the sides of the pan. Start on a medium flame, then lower it when the mixture starts sticking to the bottom of the pan. Never allow it to burn. Remove from flame.

When the mixture is warm enough to touch, make small balls out of the mixture. The mixture will be very sticky, so apply some oil on your hand. At this stage, the ladoos will also look very floppy, but they will harden when cooled.

Now place ½ cup desiccated coconut in a shallow bowl or plate. Roll the ladoos in coconut. Serve.