From The WikiGullet Project
Coconuts are the fruit of a type of palm tree. They are used are used as a foodstuff in many parts of the world.
The coconut contains a watery liquid called coconut water which can be drunk. However, this liquid is not coconut milk, which is obtained by grating, soaking, and squeezing out the liquid from the meat. That liquid then separates into coconut cream and coconut milk. In Thai cuisine, coconut cream is "cracked" to separate the coconut oil from the solids. In addition, coconut milk can be used to prepare rice and as an ingredient in sauces, soups, and curries.