Soften the pumpkin cubes in milk. In a medium-heavy pot, combine coconut milk and butternut squash.
Simmer over medium heat, stirring constantly, for about 15 minutes until the butternut squash or pumpkin can be easily pierced with a fork. Initially, it might seem like there's insufficient liquid, but as the butternut squash cooks, it will release its juices.
Make the pumpkin puree mixture. Once the fully cooked, remove the pot from heat and blend until you achieve a smooth puree. Add sugar, shredded coconut, and lemon juice.
Thicken the mixture. Return the mixture to the stovetop over medium heat, allowing it to gently boil.
Simmer without the lid for 7 minutes while stirring constantly.
Serve and enjoy! Divide the mixture between jars while it's still hot. Let it cool to room temperature before refrigerating.
