In a saucepan dissolve cornstarch with ½ cup of milk. Then slowly add the remaining milk, and vanilla extract. Bring to a boil, stirring constantly.
Gradually add hot milk mixture into the egg mixture and mix together.
Return egg mixture to saucepan and boil, stirring constantly (2-3 minutes). Cool and refrigerate until ready to use.
In an individual serving dish, put a layer of angel food cake. Top with a layer of pudding and sprinkle with toasted coconut. Then add another layer of angel food cake over the coconut. Top with a dollop of whipped cream and sprinkle coconut.