1. In a saucepan put the milk and sugar; simmer uncovered, for 20 minutes or until the mixture is slightly thickened. Let cool.
2. Once cold add the eggs lightly beaten. Stir in the almond extract and the freshly grated coconut.
3. Pour the mixture it a buttered oven dish. Set in a pan of water and bake in a 3502 oven for 1 1/2 hours or until set. Cool and chill before serving.