In a medium-size saucepan, stir together the sugar, cornstarch and salt. In a large measuring cup, whisk together the milk, lite coconut milk and the egg yolks. Stir milk mixture into saucepan. Add cinnamon stick.
Heat over medium heat for 12 to 15 minutes, stirring constantly. Increase heat to medium high, and continue stirring and cooking about 2 to 3 minutes, until pudding registers 160 degrees F on an instant-read thermometer and coats the back of a spoon. Remove from heat and strain into a large bowl or serving dish.
Stir in coconut and vanilla. Place plastic wrap directly on the surface of the pudding to cover. Let cool 15 minutes at room temperature.
Divide pudding between 6 serving glasses. Top with whipped topping, if desired, and toasted coconut. Serve warm or at room temperature. Makes 6 servings.