Add the shredded coconut (or coconut chips) to a food processor and process until smooth, scraping down the sides, as needed, so that the blades of the food processor can reach all of the coconut mixture.
At first, you will notice the coconut getting a little bit clumpy. Keep processing, and it will start to release its oils. Once some of the liquid from the oil is released, it makes it easier for your food processor to work the rest of it. Keep processing until you get the consistency you like.
Use as a spread, dip, or however you would use nut butters.
Depending upon the strength of your food processor, this can be a quick and easy process or a long one that doesn't appear to be working. Be patient!For food processors with higher blades, you may need to use more coconut and/or stop and scrape down the sides more often to efficiently process the coconut.
As long as the coconut was completely dried and no water-based liquids have been added, coconut butter keeps for several months.At cooler temperatures, coconut butter will solidify. Pour the recently made coconut butter into the storage container immediately after making it to avoid it hardening within the food processor as it cools. (The movement of the blades warms it while making it.)When it's cooler, consider pouring the finished coconut butter over a baking sheet lined with parchment paper or silicone so that it hardens into a thin layer that can be broken into pieces for easy use. (You can also pour into candy molds.)In the summer, it will stay creamy, so you can leave it at room temperature for easy spreading and other uses.
Add essential oils like lemon or mint for flavoring. (Only food-safe, and use small quantities.)
Add cocoa powder or chocolate chips during processing to make chocolate coconut butter. (Coconut butter made with chocolate chips will be slightly harder.)
You can add sweeteners if you like. Avoid liquid sweeteners for the longest shelf life.