In a saucepan under medium low heat, add the coconut, condensed milk, salt and butter. With a spatula, mix the ingredients together until all the butter is melted and the mixture goes from a soft consistency to a slightly firmer consistency that pulls away from the side of the pan, about 5 to 6 minutes or longer as needed.
Transfer the coconut mixture into a bowl and flatten into an even layer. Cover with plastic wrap and place in the fridge to chill for 30 to 60 minutes.
Once the coconut mixture is fully chilled (no longer warm to touch), spoon out a small portion, about 1 1/2 to 2 teaspoons, and roll into a ball. Transfer to a parchment paper lined baking sheet and repeat this process. You should end with 24 to 25 coconut balls.
In a small saucepan under medium heat, add the sugar, water and vinegar. Whisk the ingredients together to combine until all the sugar is dissolved and the mixture starts to come to a boil.
At this point, do not whisk any further. Continue to boil the sugar mixture until it starts to change color and becomes a golden amber brown color. Remove the caramel from the as it will continue to develop a more rich amber brown color.
Working quickly, insert a skewer into one of the coconut balls and coat in the hot caramel. I like to rotate the coconut ball in the caramel to full coat and gently shake to remove any excess caramel.
Transfer the coated candy back to the parchment lined baking sheet. Repeat process until all the coconut balls are coated in the caramel coating. (If caramel starts to become too thick, gently warm back up over medium heat to help loosen up the caramel.)
Allow the bala baiana to set for a few minutes before serving.