Preheat oven and bake pie crust according to directions on package of frozen pie crust. Cool completely before adding filling.
In a medium saucepan, bring 1 3/4 Cup water to boil. In a separate bowl, mix the dry ingredients together. Beat the dry ingredients into the boiling water and stir until well blended. In a separate small bowl, beat egg and add some of the hot mixture to the egg, beating well. Add the egg mixture to the remaining hot mixture and bring to a boil over medium heat, stirring constantly. Boil for one minute or until pudding thickens. Stir in the butter, vanilla extract and 1/2 Cup shredded coconut. Pour into prepared pie crust and chill. Cool completely before topping with Whipped topping.
Toast coconut in the oven or in a pan until golden brown if desired. Cool completely. Chill bowl and beaters in refrigerator before before making Whipped Topping. In chilled bowl, beat whipping cream and slowly add vanilla pudding mix. Whip until stiff peaks form. Spread on top of pie and sprinkle with toasted coconut. Keep pie chilled until serving time.