Coconut water comes from a fresh young coconut. Coconut water is most often used for drinking, and rarely used in cooking. The water has 46 calories per cup.
Coconut milk comes from a mature coconut. Shredded coconut meat is soaked in a measured amount of water and squeezed. The first pressing produces coconut cream, the second coconut milk. The milk has 550 calories per cup and is loaded with saturated fat. Coconut milk is most often used in cooking or baking.
The brown coconuts that are sold in US stores have been dried and had the coir—the fibrous outer shell—removed. By the time they get to the store, very little water remains in the coconut.
I don't buy coconuts very often, had quite a few bad experiences with too-old nuts that were rancid or had started fermenting.
I have used coconut milk a few times to make coconut curry, didn't care too much for it and now use evaporated milk or heavy cream.
Coconut candy is nice, but I'm the only one in the house who will touch it. Marielos doesn't care for cocunut as food, even though she does like the fragrance in shampoo.
Pic1: dry coconut, as sold in US stores
Pic3: newly harvested coconuts
Pic6: coconut milk