Coconut Bread

From Gourmet Magazine May 2003

4 cups sweetened flaked coconut (10 oz)
2 cups self-rising flour (not cake flour)
1 stick (1/2 cup) unsalted butter, softened
1/2 cup sugar
2 large eggs

Preheat oven to 350°F. Butter and flour a 9- by 5- by 3-inch loaf pan, knocking out excess flour.
Toast and grind coconut: Spread 3 cups coconut in a large shallow baking pan (1 inch deep) and toast in middle of oven, stirring occasionally, until evenly golden brown, 20 to 25 minutes. (Watch flakes carefully; edges burn quickly.) Cool completely in pan on a rack, about 15 minutes, then grind in a food processor to a coarse meal, about 40 seconds (you will have about 1 1/4 cups). Leave oven on.
Make batter: Stir together self-rising flour, ground coconut, and remaining cup (untoasted) coconut in a large bowl. Beat together butter and sugar in another bowl with an electric mixer at medium speed until pale and creamy, 1 to 2 minutes. Add eggs 1 at a time, beating well after each addition. Whisk 1 cup water into flour mixture, then add egg mixture, whisking just until well blended.
Bake bread: Pour batter into loaf pan, smoothing top with a spatula, and bake in middle of oven until a wooden skewer inserted in center comes out clean and top is evenly brown, 1 hour to 1 hour and 10 minutes. Cool bread to warm in pan on a rack, 10 to 15 minutes, then turn out of pan and set right side up on rack to cool completely, about 2 hours more. Cut into 1-inch-thick slices.
Cooks' note: • Bread can be served the day it is made, but it slices more easily if kept, wrapped in plastic wrap, at room temperature 1 day.