Soak agar in 1 cup water.
Combine milk and condensed milk and heat it.
Simultaneously heat the agar in water until it melts.
Once it gets heated take 1 cup of milk and add coconut into it. Blend it.
Strain it and pour the coconut milk into the milk mixture.
Pour melted agar into the milk mixture stirring continuously. Make sure the agar and milk are hot, otherwise the milk might curdle.
Pour into moulds and refrigerate until set for few hours.