Line an 8x8 pan with foil.
In a 3 quart saucepan, melt all the ingredients, except the coconut extract and coconut, together over low heat. Stir constantly. This will take about 10 minutes.
Remove from heat and stir in coconut extract and 1/3 - 3/4 cup coconut flakes, depending on how coconut-y you like it.
Pour the melted fudge into the foil lined pan.
Sprinkle with extra coconut on top of fudge. Press lightly into the top so coconut sticks.
Refrigerate 3-4 hours or overnight.
Remove from pan and foil. Cut into squares.
Store in the refrigerator.