Combine milk and egg yolks in a double boiler. Cook, add the vanilla or lemon extract, stirring continously , until mixture thickens and hold together. Let it cool. Shape into bite-size balls and set aside.
Place and heat the sugar in a sauce pan and stir well over low-medium heat until the sugar is melted and becomes golden brown.
Dip the yema balls (use a toothpick) in the hot caramel syrup, sprinkle with coconut, and put in a greased pan. (Reheat the syrup to ensure it remains in melting point.) Leave to set. Chill, if desired.
NOTE: You can leave step no. 3. You can directly sprinkle the coconut without dipping the balls into the caramel syrup, if you want.
2 1/2 can sweetened codensed milk12 egg yolks1 tsp vanilla or lemon extract500 grams brown sugar2 cup desiccated (flaked) coconut (optional)