In a small skillet over medium heat, toast the shredded coconut until golden brown and fragrant, then set aside.
Melt the milk chocolate chips and shortening together using a double boiler or microwave in 30-second intervals until smooth.
Stir the toasted coconut into the melted chocolate mixture until evenly distributed.
Place 12 paper liners in a standard muffin tin.
Spoon approximately 1 tablespoon of the chocolate mixture into each liner, using a spoon to coat the bottom and halfway up the sides.
Place the tray in the freezer for 10 minutes to set the chocolate shells.
In a small bowl, whisk the marshmallow crème and vanilla extract until combined.
Place a generous teaspoon of the marshmallow mixture into the center of each chilled chocolate shell.
Spoon the remaining melted chocolate over the marshmallow centers, smoothing to the edges to seal the cups completely.
Refrigerate for at least 1 hour or until the chocolate is completely firm before serving.