The bobs mill unsweetened shredded coconut is all I have locally. Could I use this instead of the flour to make the paleo bread? (coconut flour +eggs+coconut oil/milk etc). If that wont work what about blending it in a food processor until its super fine? I know nothing about baking and I really do NOT want to make some sort of bizarre quiche thing instead (which is what happened when I tried to do a zucchini pizza crust).
As others have mentioned, coconut flour is defatted, and shredded coconut whizzed in the food processor makes coconut butter, not coconut flour.
However, the process of defatting coconut is easy - defatted coconut is the byproduct of making coconut milk :) Make coconut milk by soaking the coconut in shredded water for a while, then blending, and pouring through a strainer or cheesecloth. Google around for recipes - some people boil it, some don't. I don't. I use 3 cups water to 1 cup coconut, and it makes about 2.5 cups of coconut milk. Experiment to see what works best for you.
Save the resulting pulp, and dry it in a dehydrator or oven at 200ish (I freeze it until I have a big enough batch for it to be worth the hassle), then whizz the results in a food processor or blender.
I've found that I have to use more of this flour than is recommended in most coconut flour recipes in order to get results that are similar to wheat flour, but it does work.
I agree with the previous comment about shredded coconut having too much fat to work for an end product that is close to bread.
I recommend that you simply order coconut flour online because coconut flour goes MUCH farther than you would think.
I guarantee that you will get much more mileage out of a $10 bag of coconut flour than a $4 bag of shredded.
I made an entire loaf of "coconut bread" that came out amazingly close to real bread with only 3/4 of a cup of coconut flour...
And, as you can see, it works great for soaking up those glorious egg yolks!
Here in Italy, I can't find coconut flour. (I recently brought mine from the States). So, I did exactly what you are suggesting (especially with pancakes) and never had any problems except it may have more of a coconut taste. The pieces disappear then they are cooked. True however that it is more fat. You may have to play around depending on the recipe and adapt adding less of other fats.
The following works -- but bake in muffin tins instead of as a loaf-and put the rest of the muffins in the freezer to store: 2 cups flaked unsweetened coconut, 1/2 cup almonds or pecans, 4 eggs, 1/4 tsp sea salt or RealSalt, 2 cups shredded zucchini, butternut squash, or pumpkin (uncooked) OR 2 cups blanched cauliflower or broccoli.
Place all ingredients in a blender, and pulse until relatively smooth. Put muffin papers in muffin cups, and fill half full. These will NOT rise much, so what you end up with is sort of a muffin-top type disk. I use the jumbo muffin cups, so I get a disk about a 2" (~5cm) diameter.
You can add extra stuff if you want--chopped nuts, chopped dried berries, etc.
I tried it that way at first as well since I couldn't get it locally, I toasted it and tried to dry it well but it's way too grainy texture. In the end I imported some and much happier with it.
I now have a vitamix so maybe the dry blender and dehydrator will work better than a regular blender and oven.... I'll have to try it, would be nice to not have to pay so much to import it.
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