In a small pan, toast coconut flakes over medium heat. Stir constantly until lightly browned (watch closely or they will burn!). Set coconut flakes aside.
If using regular non-instant oats, combine oats, milk, and vanilla in a microwave safe bowl. Stir. Cook on high in your microwave 2-4 minutes, stirring periodically. Stop when oatmeal is cooked to your desired consistency.
Top oatmeal with caramel sauce, toasted coconut, and chocolate chips. Add a little more milk if desired for an extra-creamy taste!