In a food processor, pulverize the coconut shreds until most pieces are the size of medium to large grains of sand.
In a large mixing bowl, combine the sweetened condensed milk and the pulverized coconut. Reserve a small portion of the pulverized or shredded coconut, to later roll the balls in.
Heat the butter in a medium or large nonstick pan over low heat.
Once the butter has melted, put the mixture of coconut and condensed milk into the pan and cook over low heat until it begins to come together. Stir constantly, to keep the milk and sugar from burning.
Remove the mixture to a large bowl once it begins to comes together and allow to cool.
Once it has cooled, apply a small amount of melted butter to the palm of your hands. Grab a quartersized piece of the mixture, squeeze it into a round and roll it between your palms until it forms into a ball. If the mixture does not hold together, heat it for longer in the pan.
Roll the coconut balls in the remaining pulverized coconut to coat, if desired.
If using nuts, press a nut into each coconut ladoo.
Enjoy, or, refrigerate and enjoy later.