Preheat the oven to 350 degrees F and line a cupcake pan with cupcake liners. Set aside.
In a medium bowl combine flour, baking powder, salt, and whisk until well combined. Set aside.
In a stand mixer, mix together butter and sugar on medium speed for about 3 minutes.
Beat in the eggs one at a time, then add in vanilla extract and half of the dry mixture at low speed.
Pour in the coconut milk and beat until combined, then add the remaining dry ingredients and mix.
Using a spatula, gently fold in the shredded coconut. Next, scoop out the batter into the cupcake pan and fill about ¾ full, then bake for 20-25 minutes or until the center is cooked. (Check by inserting a toothpick and if it comes out clean, it’s done.)
Allow the cupcakes to cool for 10 minutes in the cupcake pan, then transfer to a wire rack to cool completely before adding your desired frosting.
Garnish the cupcakes with toasted coconut and serve.