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Coconut Milk Fragments are a byproduct of splitting a coconut. They are edible and provide some hunger bar restoration and saturation. Consuming one milk fragment restores one full shank, or two hunger points.
To obtain a coconut milk fragment, one must first place any vanilla sword above a coconut in a crafting table. Only one position will "crack" a coconut, shown below:
Upon removing the seed from the crafting table, the sword used will take one damage and a coconut shell and milk fragment will appear adjacent to the former location of the coconut, as shown below: