"Contrary to some misconceptions, coconut milk is not the liquid inside a coconut -- but a thick, dairy-like substance made by squeezing the grated flesh of a coconut with some hot water. Coconut milk, when refrigerated and not shaken, separates into two layers, with the thick (upper) layer being the coconut cream and the thinner (bottom) layer constituting the milk. The top layer can be skimmed off with a spoon and used for recipes requiring coconut cream (usually desserts) -- the bottom layer being reserved for recipes specifying coconut milk.