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Coconut milk will work for just about any milk recipe - or at least I haven't found one for which it doesn't work. DS suddenly became lactose intolerant, so we've made the switch. Yes, pudding will set. Also makes a very nice mac and cheese, any white sauce, subs for milk in baked goods, etc.
It will work if you put much less milk in it. Instead of two cups, stick with one to start with, then add a bit more. Go for a cooked version. That works better. Cashew milk is tasteless so that is better, as is almost milk. Soy and oat suck as they are soy and oat-tasting. Know that it will be much sweeter as you are using less liquid.