Generously grease a 3-quart casserole or 9-inch square baking dish with coconut oil.: As you rub the coconut oil over the bottom and sides, notice the slight sheen and faint scent of coconut, which primes the pan and prevents sticking. This step matters because the oats will cling as they set, and a well oiled pan ensures clean slices and easier serving. A common mistake is skimping on oil, which leads to tearing when you scoop the oatmeal, so be thorough and get into the corners.
In a medium bowl, beat the eggs, coconut milk, honey and vanilla until smooth.: When whisking, aim for a uniformly glossy mixture with no streaks of egg white or clumps of honey, the surface should look slightly viscous and creamy. The reason for combining these wet ingredients first is to ensure even distribution of sweetness and fat, and a smooth emulsion keeps the final texture consistent. If you rush and do not fully dissolve the honey, you may end up with pockets of sweetness, which can make some bites overly sweet compared to others.
Add the water, oats, 1/4 cup coconut, and salt. Mix well.: After adding the water and the steel cut oats , stir until every oat is coated and there are no dry pockets, you should see the mixture thicken slightly as the oats begin to absorb liquid. This step allows the oats to hydrate overnight and establishes the final mouthfeel. If you under stir, some oats can remain dry and grainy after baking, so scrape the bottom of the bowl and mix until uniform.
Pour the mixture into the prepared pan and cover with plastic wrap. Refrigerate overnight.: When you transfer the batter into the dish, spread it so the surface is even, then cover tightly with plastic wrap to prevent a skin from forming and to allow the oats to hydrate in the cold. Overnight refrigeration lets the oats soften gradually, resulting in a more tender finish when baked. Avoid skipping the overnight rest unless you plan to bake for much longer; skipping it will often yield firmer, unevenly cooked oats.
In the morning, preheat the oven to 350 F.: Preheating is your ticket to even baking, you want the oven at a stable temperature so the oatmeal sets predictably rather than cooking unevenly. The preheated oven also helps the top develop a gentle crust while the interior becomes custardy. A common issue is placing the dish in an oven that is still warming, which can lengthen bake time and result in an inconsistent set.
Remove the plastic wrap and bake the oatmeal for 35-40 minutes or until set in the middle.: As it bakes, pay attention to visual cues, the edges will become slightly puffed and the top will take on a light golden tone, while the center should jiggle only a little when nudged. The smell will turn warmly coconutty with a hint of honey browning, signaling readiness. If you bake too long you will lose the custardy texture and get a dry finish, so start checking around 35 minutes and use a gentle nudge test to determine doneness.
Meanwhile, toast the remaining 1/4 cup coconut in the oven on the side, stirring once or twice, for 4-6 minutes or until light golden.: Spread the reserved shredded unsweetened coconut on a small sheet and watch carefully as it goes from pale to golden in minutes, stirring to ensure even color. The aroma will shift to a toasty, nutty note that adds contrast to the creamy baked oats, and that crunch is what elevates the final presentation. Burning is the single most common mistake here, so stay attentive and remove the coconut the moment it reaches a light golden hue.
Drizzle the oatmeal with a little extra honey and sprinkle with toasted coconut. Serve hot.: When you drizzle the warm dish with honey , it glistens and melts into the surface, creating sweet pockets and a glossy finish, while the toasted flakes add a crisp, fragrant crown. Serve immediately while the oatmeal is warm so you enjoy the contrast between creamy interior and crunchy topping. If you let it sit too long before serving, the top can soften and the texture loses some of its intended contrast.