Add sugar, butter, and evaporated milk to a saucepan. Bring to a boil on medium high. Boil for 1 minute, stirring constantly.

Remove from heat and stir in butterscotch chips. Stir in oats and coconut.

Let cool 5 minutes. Drop by teaspoonful onto a piece of wax paper. Let cool for 2 to 3 hours before eating.