In a medium bowl, combine the graham cracker crumbs, melted butter, and sugar. Mix until the crumbs are fully coated. Press the mixture evenly into the bottom of a 9x13-inch baking dish to form the crust. Refrigerate the crust for 10-15 minutes to set while preparing the next layer.

In a large mixing bowl, beat the softened cream cheese and powdered sugar together until smooth. Fold in the whipped topping and shredded coconut until fully combined. Spread this mixture over the chilled crust, creating an even layer. Place back in the refrigerator to set while you make the pudding layer.

In another mixing bowl, whisk together the instant coconut pudding mix and cold milk for about 2 minutes, until the pudding thickens. Spread the pudding evenly over the coconut cream layer.

Gently spread the remaining whipped topping over the coconut pudding layer, smoothing it with a spatula. Sprinkle the toasted coconut evenly on top for added flavor and texture.

Refrigerate the dessert for at least 4 hours, or overnight, to allow the layers to set. Slice into squares and serve cold for a creamy, refreshing treat!