Choose ripe coconuts. You can tell they're ripe when they have a brown, hairy outer husk.

Remove the outer husk to reveal the hard shell of the coconut.

Use a heavy cleaver or a hammer to crack the coconut open.

Carefully separate the white flesh from the hard shell. You can do this by prying the meat away from the shell.

Grate the coconut meat using a grater or a food processor. The finer the grating, the better for extracting the coconut milk later.

Place the grated coconut meat in a large bowl and add warm water. Mix it well.

Squeeze and knead the mixture with your hands to extract the coconut milk. This is the first extraction, and it will be thick and creamy.

Use a cheesecloth or a fine mesh strainer to strain the coconut milk into another container. This will separate the liquid (coconut milk) from the solid (coconut pulp).

Take the separated coconut pulp and mix it with warm water for a second extraction.

Squeeze and knead to extract the coconut milk again. This will be thinner than the first extraction.

Strain the second extraction of coconut milk and combine it with the first extraction in a container.

Allow the container of coconut milk to sit undisturbed for several hours or overnight. During this time, the coconut cream will naturally separate from the coconut water. The cream will rise to the top, and the water will settle at the bottom.

Carefully scoop off the separated coconut cream from the top of the container. This cream is what will be used to make coconut oil.

In a pan or pot, heat the coconut cream over low to medium heat. Stir it occasionally.

As you heat the coconut cream, it will start to release its moisture and turn into oil. Continue heating and stirring until the oil is clear, and the solid bits (known as coconut residue) turn golden brown.

Filter the oil through a fine mesh strainer or cheesecloth to remove any remaining solids.

Allow the filtered coconut oil to cool before transferring it to a clean, airtight container. Store it at room temperature.