Preheat the oven to 350°F.
In a large mixing bowl, combine all the dry cupcake batter ingredients and whisk together. Then add the wet and mix together to form your batter.
Line or grease a standard cupcake pan for 12 cupcakes. Add about 2-3 tablespoons of the cupcake batter to each mold.
Bake the cupcakes for 20-22 minutes, until a toothpick comes out mostly clean. Allow the cupcakes to cool slightly before transferring them out of the pan and onto a wire rack to cool completely.
To make the frosting, combine the softened stick of butter and powdered sweetener in a bowl and cream them together with a hand mixer or stand mixer. Add the coconut milk as needed as well as the coconut extract, until smooth.
Add the finished frosting to a pastry gun, pastry bag, or use a knife to frost the cooled cupcakes to your liking.
Sprinkle ¼ cup of the untoasted shredded coconut on the frosted cupcakes.
Toast the rest (½ cup) of the shredded coconut in a non-stick pan on the stove (about 1 minute over medium-low heat). Sprinkle this toasted coconut on the cupcakes as well.
