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.
1 1/4 cups all-purpose flour, 1 teaspoon baking powder, 1/2 teaspoon salt
In a stand mixer, mix together butter and sugar on medium speed for about 3 minutes.
1/2 cup unsalted butter, 1 cup granulated sugar
Beat in the eggs one at a time, then add in vanilla extract and half of the dry mixture at low speed.
2 large eggs, 1 teaspoon vanilla extract
Pour in the coconut milk and beat until combined, then add the remaining dry ingredients and mix.
3/4 cup coconut milk
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.)
1/2 cup shredded coconut
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.
2 cups toasted shredded coconut