Preheat oven to 350°. In a large bowl, mix coconut, milk and flour until blended; stir in M&M's.
Drop mixture by rounded tablespoonfuls 2 in. apart onto greased baking sheets. Bake 8-10 minutes or until edges are lightly browned. Remove from pans to wire racks to cool. Freeze option: Freeze cookies, layered between waxed paper, in freezer containers. To use, thaw before serving.