Set the instant pot to sauté and add the coconut oil.

Once oil has melted, add the kernels and stir until kernels are coated in oil.

Stir until kernels start to pop, once popping put the lid on. Pop the kernels until you hear it stop popping.

Turn off the instant pot and remove popcorn. Sift out the unpopped kernels. Set popcorn aside.

In a saucepan on medium heat, add sugar and 3 teaspoons of water. Do not stir, allow sugar to melt.

Once sugar looks light brown, add butter to melt. Once butter melts, stir and add the milk slowly. Cook for 5 minutes then remove from heat. Let caramel cool until it thickens.

Once caramel thickens, pour half of the caramel on the popcorn and stir until popcorn is fully coated. Place popcorn in refrigerator for 1 hour.

Remove and pour remaining caramel to coat the popcorn. Return the popcorn to the refrigerator until ready to serve.