Preheat oven to 425°F. Toast 1/2 cup coconut 5 minutes or until lightly brown; set aside.

Bake pastry shell 8 minutes; cool slightly. Meanwhile, in medium bowl, beat eggs. Add sweetened condensed milk, water, vanilla, salt and nutmeg; mix well. Stir in remaining 1/2 cup coconut. Pour into pastry shell. Sprinkle with toasted coconut.

Bake 10 minutes. Reduce oven temperature to 350°F; bake 25 to 30 minutes longer or until knife inserted near center comes out clean. Cool. Chill if desired. Refrigerate leftovers.