Coconut Fudge

2 cups sugar
1 Tbsp butter
3/4 cup milk
1 tsp. vanilla
2/3 cup shredded coconut

Combine sugar, butter and milk in a large heavy saucepan and heat over medium heat, stirring only until sugar is dissolved. Continue to cook until it reaches the soft ball stage. Remove from heat and when almost cold, add vanilla and beat until creamy. Stir in coconut and turn into greased 8X8 pan. Cut when cool.