Reserve 2 tablespoon toasted coconut. Combine remaining coconut and melted butter in a medium bowl. Press onto bottom and 1-inch up sides of ungreased 9-inch springform pan. Refrigerate for 15 minutes.
Meanwhile combine pudding mix and milk in a large bowl. Prepare according to package directions.
Gently stir whipped cream and sugar into the pudding. Pour into the coconut crust. Sprinkle top with remaining coconut. Refrigerate until it's set for at least 4 hours.