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Preheat your oven to 180°C (350°F) and prepare a cupcake tray with liners.
In a mixing bowl, cream together the softened butter and white sugar until light and fluffy.
Add the eggs one at a time, mixing well after each addition.
Stir in the sour cream, milk, and vanilla extract until combined.
In another bowl, whisk together the cake flour, baking powder, and softened shredded coconut.
Gradually add the dry ingredients to the wet mixture, mixing until just combined.
In a separate bowl, beat the egg yolks with the granulated sugar until pale and creamy.
Mix in the cornstarch, coconut milk, and coconut cream until smooth.
Fold this mixture into the cupcake batter gently.
Spoon the batter into the prepared cupcake liners, filling them about two-thirds full.
Bake in the preheated oven for about 20-25 minutes, or until a toothpick inserted into the center comes out clean.
Once baked, allow the cupcakes to cool completely on a wire rack.
For the frosting, beat the unsalted butter and softened butter together until creamy.
Add the coconut custard and sweetened condensed milk, mixing until smooth and fluffy.
Frost the cooled cupcakes generously with the coconut frosting.
Top with toasted coconut and additional shredded coconut for garnish.