LINE 9-inch-square baking pan with foil, extending foil over edges of pan. Grease foil with butter. Butter sides of 3-quart heavy-duty saucepan.
COMBINE sugar, coconut milk and 1/2 cup butter in prepared saucepan. Cook over medium heat, stirring frequently, until mixture boils. Clip a candy thermometer to side of pan, making sure the bottom of the thermometer does not touch bottom of pan. Reduce heat to medium-low. Continue boiling at a moderate, steady rate without stirring, until thermometer registers 238° F., softball stage (about 15 minutes). Adjust heat as necessary to maintain a steady boil. Remove from heat.
STIR in morsels until melted and smooth. Stir in marshmallow crème, nuts, vanilla and coconut extracts until well combined. Transfer mixture to prepared baking pan; cool for 3 to 4 hours or until firm.
LIFT from pan; remove foil. Cut into 48 pieces. Store tightly covered.