Let's cook.
Rinse the small tapioca pearls under cold water in a fine-mesh sieve until the water runs clear. This removes excess starch.
In a medium saucepan, combine the rinsed tapioca pearls, coconut milk, milk, sugar, and salt. Stir well to combine.
Bring the mixture to a gentle simmer over medium heat, stirring constantly to prevent the tapioca from sticking to the bottom of the pan.
Reduce the heat to low and continue to cook, stirring frequently, for 15-20 minutes, or until the tapioca pearls are translucent and the pudding has thickened to your desired consistency.
Remove the saucepan from the heat and stir in the vanilla extract.
Pour the tapioca pudding into individual serving bowls. Allow it to cool slightly before serving, or chill completely for a thicker consistency.
Garnish with shredded coconut before serving.
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