Place a pan over medium-low heat and melt the butter.

Add the condensed milk to the melted butter and stir well.

Gradually add the shredded coconut and vanilla (powder or syrup).

Continue stirring the mixture over low heat until it thickens significantly and reaches a dough-like consistency that pulls away from the pan.

Line a baking tray with parchment paper

Spread the coconut mixture onto the tray in a thin layer to help it cool down quickly.

Once the mixture is cool enough to handle, roll it into small, uniform balls.

Place the coconut balls in the freezer for about 20–30 minutes.

They need to be very cold so the caramel sets instantly when dipped.

In a clean pan, combine sugar and water.

Allow the mixture to boil over medium heat without stirring.

Add a small squeeze of lemon juice to the mixture to keep it smooth.

Wait until the syrup transforms into a golden-brown caramel.

Turn off the heat

Using a fork or a skewer, quickly dip each frozen coconut ball into the hot caramel until fully coated.

Place the coated balls back onto the parchment paper.

The cold temperature of the coconut will cause the caramel to harden almost instantly.

If you have leftover caramel, drizzle it onto the parchment paper in patterns to create decorative garnishes.

Once the caramel shells are completely set and crunchy, arrange the Bala Baiana on a plate and serve.