Preheat your oven to 350°F (175°C). Prepare a baking sheet by lightly greasing it or lining it with parchment paper. In a large mixing bowl, combine the flour, salt, sugar, and baking powder. Mix well to ensure the dry ingredients are evenly distributed.

Slowly add the coconut milk to the dry ingredients, mixing with a wooden spoon or your hands until a dough begins to form. If the dough feels too sticky, add a small amount of flour, a tablespoon at a time, until it becomes pliable and soft but not sticky.

Incorporate the melted butter or coconut oil into the dough. Knead it gently on a floured surface for about 5 minutes. This step ensures a smooth, elastic texture for the bread. If you’re using grated fresh coconut, fold it into the dough during this step.

Divide the dough into four equal portions. Shape each portion into a small round or oval loaf, about 4 inches in diameter. Place the loaves on the prepared baking sheet, leaving some space between them for slight expansion during baking.

For a rustic touch, score the tops of the loaves lightly with a knife, creating decorative patterns if desired. This also allows the bread to bake more evenly.

Let the dough rest for about 10-15 minutes at room temperature. This resting period allows the baking powder to activate, giving the bread a softer texture.

Bake the loaves in the preheated oven for 20-25 minutes, or until the tops turn golden brown and the bread sounds hollow when tapped on the bottom. Avoid overbaking to preserve the soft, fluffy interior characteristic of Pan de Coco.

Remove the bread from the oven and allow it to cool slightly on a wire rack. Serve warm with butter, cheese, or even a side of refried beans for an authentic Honduran experience. For a sweeter variation, drizzle with honey or sprinkle with sugar.