1. In a medium pot, bring water to boil. Add the small tapioca pearls and cook for 20 minutes or until translucent (check your package instructions). Stir occasionally to prevent them from sticking together.
2. Remove from the heat and strain, using a fine sieve. Rinse with cold water. Set aside.
3. In an another pot, add coconut milk, milk, water and sugar. Heat over medium-high heat until its almost boiled and mix to melt the sugar completely.
4. Then add tapioca pearls from #2 into the milk mixture. Let it cool to room temperature. Once it has cooled, cover and place in the refrigerator until completely chilled.