Toast 1/2 cup coconut; set aside. Bake pastry shell 8 minutes; cool slightly. Meanwhile, in medium mixing bowl, beat eggs. Add sweetened condensed milk, water, vanilla, salt and nutmeg; mix well. Stir in remaining 1/2 cup coconut. Pour into prepared pastry shell. Sprinkle with toasted coconut.
Bake 10 minutes. Reduce oven temperature to 350 degrees; continue baking 25 to 30 minutes or until knife inserted near center comes out clean. Cool. Chill, if desired. Refrigerate leftovers.