Combine water and sugar in a small saucepan over medium-high heat.

Stir continuously until the sugar dissolves and the mixture comes to a boil. Let boil 3 minutes, then remove pan from heat.

Stir in the coconut extract (careful! It might bubble up when you add it).

Set syrup aside to cool.

Add espresso granules to a small bowl, then add the boiling water. Stir until combined, then set aside.

Add ice cubes to a 8-12 ounce glass or jar.

Slowly pour the 1/2 oz caramel sauce into the glass over the ice cubes, followed by 1/2 oz of coconut simple syrup.

Slowly pour the milk into the glass, followed by the hot espresso. If you pour each ingredient separately and slowly, you should be able to create a light layering effect, but it’s okay if your liquids mix together a bit, too.

Stick a (paper or re-usable!) straw into the drink and serve immediately. You could also garnish with whipped cream, caramel drizzle, and toasted coconut flakes before serving.