Combine grated coconut, castor sugar, evaporated milk, condensed milk, butter and salt in a non-stick saucepan. Cook, stirring continuously over a low heat, until mixture starts to bubble.
Add vanilla essence and egg white and keep on stirring until mixture turns quite dry and does not stick to the sides of the saucepan.
Turn out mixture onto greased cookie trays. Level the mixture by pressing down with a flat spatula. Set aside to cool.
When the coconut candy has hardened slightly, cut into small cubes with a lightly greased knife. Store in an airtight container.