In a large mixer bowl, beat whipping cream until peaks start to form. Add powdered sugar a little at a time while mixer continues whipping cream until stiff peaks form.
In a microwave safe bowl, add white chocolate and milk and microwave in 20 second intervals, stirring in between until white chocolate is melted and smooth. Stir in vanilla. Beat in softened cream cheese.
Fold white chocolate mixture, whipped cream and 1/4 cup of coconut together until well combined.
Spoon into serving dishes. Sprinkle with remaining coconut and drizzle with caramel (You may want to heat caramel slightly to make drizzling easier.)