Add shredded coconut, sweetened condensed milk, and vanilla extract to a bowl and stir to combine. Transfer mixture to a parchment-lined baking pan and smooth out. Refrigerate for at least 2 hrs.
Once the mixture is firm, remove from baking pan and cut into equal-sized pieces.
Roughly chop milk and dark chocolate and add to a heatproof bowl. Set over a pot with simmering water and melt chocolate while stirring. Let cool down. Transfer coconut bars to a wire rack. Brush the topsides of the bars with melted chocolate, then refrigerate for approx. 10 min. to firm up. Remove from fridge and turn the bars upside down. Brush with remaining melted chocolate until all sides are coated. Let set for approx. 1 hr. Enjoy!