Position rack in bottom third of oven and preheat the oven to 350?F.
Grease a 9 by 5-inch loaf pan with 1 tablespoon of the butter. Set aside.
In a large mixing bowl, combine the flour, sugar, baking powder, and salt. Stir to combine.
Using a knife, cut the remaining butter into small cubes. Using a pastry cutter or your fingers, blend the butter into the flour mixture until it resembles coarse meal.
Add the coconut, stirring to combine.
In a second large mixing bowl, whisk together the coconut milk, eggs, and vanilla.
Using your clean hands, make a well in the flour mixture and pour the milk mixture into it, stirring just until moistened. The batter will be lumpy.
Pour the batter into the prepared baking pan and bake for 1 hour and 5 minutes to 1 hour and 10 minutes, until a toothpick inserted into the center comes out clean.
Using oven mitts or pot holders, remove the pan from the oven. Allow the bread to cool in the pan for 10 minutes. Invert the bread onto a wire rack to cool. Serve warm or at room temperature.
Yield: One 9 x 5-inch loaf, serving 6