Coconut Custard

1 cup sugar
1 cup water
2 cups coconut flakes
2 T's oloroso sherry (optional) 
4 egg yolks
1 cup milk
1/3 cup slivered almonds

Combine the sugar and water in a large heavy pot. 
Bring to a boil and stir in the coconut. 
Reduce the heat and simmer until the liquid is syrupy 
and the coconut has turned from transparent back to milky, about 20 minutes.
 If using sherry, stir it in and simmer 3 minutes more.
Beat the egg yolks with the milk in a medium bowl.
 Whisk in about 1/2 cup of the coconut mixture, 
then stir the entire egg and coconut mixture into the pot.
 Cook over medium heat, stirring frequently, until the mixture is thick
 and custard like and tiny bubbles break over the entire surface. 
Transfer to a glass or ceramic dish and set aside to cool and set.
Spread the almonds in an ungreased small skillet or on a microwave-safe plate. 
Stir over medium-high heat or microwave on high for 4 minutes, until toasted. 
Sprinkle the almonds over the top of the custard. 

Serve at room temperature or chilled.