In a medium bowl, mix 8 ounces of softened cream cheese, 1/4 cup of powdered sugar, and 1 teaspoon of vanilla extract together until smooth and creamy, about 2 minutes.

Take 4 slices of thick-cut brioche or challah bread and spread a generous layer of the cream cheese filling on one slice of each pair. Place the other slice on top to create sandwiches.

In a large bowl, whisk together 4 large eggs and 1 cup of milk until evenly combined and slightly frothy.

Carefully dip each sandwich into the egg mixture, allowing excess to drip off, and press both sides into a plate filled with 1 cup of shredded coconut.

In a skillet, heat 2 tablespoons of butter over medium heat until melted and bubbly. Fry each coconut-crusted sandwich for about 3-4 minutes per side until golden-brown.

Once cooked, transfer the French toast to a paper towel-lined plate to absorb excess oil and serve warm.