Preheat an oven to 350 degrees F. Spread the coconut out in an even layer on a small baking sheet. Bake for 5 minutes, until lightly golden brown. Cool and then blitz in a food processor, or finely chop with a knife into small bits.
To make the rim coating: combine 1/4 cup coconut bits with the tajin and sugar. Mix well and pour into a shallow plate.
Using a lime wedge, coat the rim of a glass with lime juice and dip the glass in the toasted coconut mixture, and set aside.
To make the coconut margaritas: In a cocktail shaker combine the tequila, Grand Marnier, lime juice, cream of coconut, toasted coconut bits, and coconut extract. Add a few ice cubes, top the shaker with the lid, and shake vigorously for 10 seconds.
Add ice to the prepared glass and strain the contents of the cocktail shaker into the glass. Enjoy!