Hi Commis/Artistpaul
Yeah, that's where the confusion is for me then I guess. If the recipe calls for "coconut milk powder" then I pressume that a quantity of liquid will be added to the dish to create, "coconut milk" within the dish? If it just asks for coconut powder, I would still take it as coconut flour. As far as using coconut flour as a thickener, In my experience, it doesn't really do the job, certainly not in the same way as using cornflour or a roux.
I do agree with you artistpaul with regards to coconut flour adding a slightly grainy texture but again, this is a characteristic of a lot of bir korma's or CTM's.
Going back to commis's original querey, try either and stick with what you prefer lol ;D
Ray