German Coconut Frosting

1/2 c. evaporated milk
2/3 c. sugar
2 T. butter
1 egg
1/8 t. salt

cook and stir over med heat until mixture thickens and starts to boil - about 10 min.
remove from heat and stir in
1 t. vanilla
1-1/4 c. coconut
1/2 c. chopped nuts