Set the Instant Pot to sauté mode and add the coconut oil.

Once the coconut oil has melted, add the popcorn kernels. Stir until the kernels are evenly coated with oil.

Continue stirring until the kernels begin to pop. Once the popping starts, place the lid on the Instant Pot and continue cooking until the popping slows and then stops.

Turn off the Instant Pot and carefully remove the popcorn. Sift through the popcorn to remove any unpopped kernels. Set the popped popcorn aside.

Add the sugar and water to a saucepan over medium heat. Let the sugar melt without stirring.

Once the sugar turns light brown, add the butter and allow it to melt. Stir to combine, then slowly add the milk.

Cook the caramel for 5 minutes, then remove the saucepan from the heat. Let the caramel cool until it thickens.

Pour half of the thickened caramel over the popcorn. Stir until the popcorn is evenly coated. Refrigerate for 1 hour.

Remove the popcorn from the refrigerator and pour the remaining caramel over it. Stir to coat the popcorn evenly.

Return the popcorn to the refrigerator until ready to serve.