Preheat your oven to 375°F (190°C). Lightly grease a baking sheet or line it with parchment paper.

In a large mixing bowl, whisk together flour, salt, baking powder, and sugar until well combined.

Stir in the grated coconut evenly through the flour mixture.

Add shortening and margarine. Use your fingertips or a pastry cutter to work the fats into the flour until the mixture looks like coarse crumbs.

Mix together the coconut milk and coconut water. Gradually pour the liquid into the flour mixture, stirring gently until a soft dough forms. (You may not need all the liquid depending on your coconut’s moisture.)

Turn the dough onto a lightly floured surface. Gently knead just 4–5 times — just enough to bring it together. Do not overwork.

Shape the dough into a round loaf, about 1 to 1½ inches thick. Place on the prepared baking sheet and bake for 25–30 minutes, or until the top is golden and the bread sounds hollow when tapped.

Let it cool slightly before slicing. Serve warm or at room temperature with butter, cheese, or your favorite savory topping.

For extra island flair, brush the top with a bit of coconut milk before baking for a slight crust and shine. This bread also reheats beautifully in a toaster oven the next day.