Line an 8x4x2-inch loaf pan with foil, extending the foil over edges of the pan. Spray the foil with nonstick cooking spray, and set aside.
In a 1 ½-quart heavy saucepan combine the sugar and the corn syrup. Cook over medium-high heat to boiling, stirring constantly with a wooden spoon for 3 minutes to dissolve sugar, and clip a candy thermometer to side of pan.
Cook over medium heat (mixture should boil at a moderate, steady rate over the entire surface), stirring occasionally, until the thermometer registers 280 degree F, (soft-crack stage) about 7 minutes.
Meanwhile, in a heavy 2-quart saucepan combine coconut milk, water, pectin, and baking soda. (Mixture will be foamy.) Bring to a boil over medium heat, stirring constantly, about 2 minutes. Remove saucepan from heat; set saucepan aside.
When sugar mixture in first saucepan has reached soft-crack stage, remove the saucepan from heat; remove candy thermometer. Return pectin mixture to boiling. Gradually pour the hot sugar mixture in a thin stream into the boiling pectin mixture, stirring constantly (this step should take 1 to 2 minutes). Cook, stirring constantly, 1 minute more.
Remove saucepan from heat. Pour candy mixture into prepared pan. Let stand about 2 hours or until firm.
When firm, use foil to lift candy out of pan. Use a wet knife to cut candy into about 3/4-inch squares. Roll squares in Coconut Sugar. Store loosely covered.
Makes about 45 pieces.
Coconut Sugar: Place ½ cup toasted coconut in a food processor. Cover and process until very finely ground. Add ¼ cup granulated sugar. Store in an airtight container. Makes ½ cup.