BRING 3-1/2 cups milk, sugar and cinnamon sticks to boil in large saucepan on medium heat. Remove from heat. (Mixture may appear curdled.) Let stand 5 min. Remove and discard cinnamon sticks.
ADD cornstarch to remaining milk; stir until dissolved. Add to ingredients in saucepan along with the coconut; stir. Cook on medium-high heat 5 min. or until thickened, stirring constantly.