Add water and ginger to a medium pan with fitting lid and bring to a boil. Lower heat, cover and simmer for 30-40 minutes.
Cut the vanilla bean lengthwise and scrape the seeds. Add that, along with the honey, to the simmering ginger. Partly cover and simmer for an additional 45 minutes over low heat.
Turn the heat off and let the ginger soak overnight, or at least 6 hours.
Bring back to a boil, lower heat and simmer, partly covered, for 30 minutes. Turn off the heat and allow to cool completely, then repeat 2 more times.
Now bring bring to a boil one last time and allow to simmer, uncovered, until the honey syrup becomes really thick and takes a caramel colour. Do not allow it to burn. This should take about 15-20 minutes.
Remove pieces of ginger and place on a cooling rack placed over a cookie sheet and allow to dry overnight.
(Don't throw out that little bit of honey syrup that's left at the bottom of the pot! It's extremely concentrated as it is now, but just add more honey to it and you will have the most delicious Vanilla Ginger Honey... Bonus!)
Grind the coconut in a small food processor or coffee grinder. Transfer to a plate and roll the pieces of ginger in the coconut until coated on all sides.
Return to the cooling rack and let dry overnight once again.
Store in an airtight container (if you still have any left to store, that is!)
Notes
*For the record, almost 5 months later, I still have a few pieces of this in the cupboard, stored in a Mason jar, and it's still as good as it was on day one, if not better!