• Pour shredded coconut into a food processor. Turn on and allow it to whirl around. You’ll start with shredded coconut, then to crumbs, to paste, to finally a smooth liquid. Once you get to a nice smooth coconut liquid add medicated oil, pour into a jar and store at room temperature. Coconut butter will solidify as it cools. If you need it in more of a liquid state place the jar into a bowl of warm water to heat it up.