In a large mixing bowl, combine shredded coconut, sweetened condensed milk, and vanilla extract. Mix until evenly coated and sticky.
Scoop small portions and shape into oval or trail-style clusters using your hands.
Place the shaped coconut trails on a parchment-lined baking sheet.
Refrigerate for 15–20 minutes until firm.
Melt white chocolate chips with coconut oil in a microwave-safe bowl, heating in short intervals and stirring until smooth.
Drizzle or lightly dip the chilled coconut trails in melted white chocolate.
Immediately decorate with mini marshmallows, candy eyes, and pink sanding sugar before the chocolate sets.
Return to the refrigerator for another 15–20 minutes, or until fully set.
Serve chilled or store until ready to enjoy.