Preheat oven to 350ºF.
Line a 12-cup muffin tin with paper or foil liners.
Combine all the cupcake ingredients in a bowl and mix with an electric mixer until smooth. Add approximately 1/2 cup of batter to each cup. Bake until risen and golden brown (approx. 20-25 minutes). To test for doneness, insert a wooden pick into the middle of a cupcake. Cupcakes are done if the wooden pick comes out clean.
Remove the cupcakes from the oven and from the tin. Transfer them to cooling rack. Allow to cool completely.
Combine all icing ingredients in a mixing bowl. Using an electric mixer, blend ingredients until they are completely combined and creamy. Using a small spreader, apply a generous amount of icing to each cupcake. Gently press some coconut shred onto the frosting of each cupcake.
If you have extra batter
Place 3-4 paper cup liners in the muffin tin cups. Fill each of the lined cups with approximately a 1/2 cup of batter. Add 2 Tbsp. of water to each empty cup and bake at 350ºF. Monitor the baking of these cakes, and test for doneness as in the previous batch.
Alternate Icing: Top off your cupcakes with our delicious Lime Butter Cream with Coconut.