A dessert inspired by spring, these Coconut Lime Cupcakes are filled with bright and tropical flavors. The cupcakes are light and fluffy and the frosting has just the right amount of sweetness. Decorate these finished cupcakes with a little toasted coconut and a lime wedge!
Start by toasting the coconut. Preheat oven to 325°F. Spread 2 cups of sweetened coconut on a baking sheet covered with a silat mat or parchment paper. Place in the middle rack of the oven and bake for 4 minutes. Remove from oven and stir with a spatula. Place back in the oven for 5-6 more minutes or until golden brown. Set aside.
To make the cupcakes, preheat the oven to 350°F. Line a 12-cup muffin pan with cupcake liners. Set aside.
Whisk the flour, baking powder, and salt together in a large bowl. Set aside.
With a handheld or stand mixer fitted with a paddle attachment, beat the butter on high speed in a large bowl until smooth and creamy, about 1 minute. Add the sugar and beat on high speed for 2 minutes until creamed. With the mixer running on low speed, add the eggs one at a time, then add the vanilla and coconut extract. Beat on medium-high speed until combined. Scrape down the sides and up the bottom of the bowl as needed.
With the mixer running on low speed, slowly add half of the dry ingredients. Mix until just combined then add half of the coconut milk. Repeat with the remaining dry ingredients and coconut milk. Increase speed to medium and add the lime juice, lime zest and 1 1/2 cups of the toasted coconut, leaving some out to decorate. Try to avoid overmixing.
Spoon the batter into the prepared liners until1/2 - 2/3 full. Bake for 16-18 minutes, or until a toothpick inserted in the center comes out clean. Allow the cupcakes to cool completely before frosting.
To make the frosting, in a large bowl using a handheld or stand mixer fitted with a whisk attachment, beat the butter on high speed until completely smooth and creamy, approximately 2-3 minutes. Add the powdered sugar 1 cup at a time, beating on low at first then increasing to high speed until completely incorporated. Once all powdered sugar has been added, beat in the vanilla extract, lime juice and lime zest. Add a little salt if it's too sweet.
Once cupcakes are cool, frost the cupcakes and top with a wedge of lime and reserved toasted coconut. Store in an air tight container in the refrigerator for up to 3 days.