In a small bowl, sift powdered sugar, then add 1/4 teaspoon vanilla extract and 1 tablespoon of coconut milk.
Stir ingredients until combined and smooth. To make the consistency thinner, stir in 1 teaspoon of coconut milk at a time.
Notes
You can try using another type of extract with this recipe to get a different flavor icing, for example, almond extract. Also, this icing will become more translucent when more coconut milk is added to the mixture. Keep this in mind if you want more of a thicker/opaque/white effect.
You can easily substitute coconut milk for regular milk or milk of your choice.
This recipe makes enough for drizzling over a 10 inch round cake, 1-2 quick pieces of bread (depending on desired coverage).