In a saucepan, combine cornstarch, coconut water and stir until dissolved. Heat the mixture on medium heat until it starts to boil and turn to low and simmer for about 3-5 minutes just until it thickens like syrup. (Adding cornstarch is a method to make the ice becomes smooth and soft).
Pour mixture into a large mixing bowl, add the sugar and stir until fully dissolves. Let it cool down a little bit before adding the remaining ingredients. Add in sweetened condensed milk, fresh milk and vanilla extract if desired. Stir thoroughly until well blended and add coconut strings and mix well. Taste test your mixture and add sugar if needed.
Use a ladle or measuring cup and fill each popsicle cavity with your Buko mixture at least 1/3 cup each. If you don’t have a popsicle mold you can use plastic or paper cups. Arrange ice buko in a tray and freeze until frozen. But if you’re using a metal cups like me, wait until your ice buko is partially set, before inserting a popsicle stick in the center. Freeze until frozen, serve and enjoy anytime!