Make the Coconut Custard:

1. In a bowl, whisk sugar, cornstarch, and salt. Add egg yolks and whisk into a smooth paste.

2. In a saucepan, heat coconut milk and cream over medium heat until it begins to simmer.

3. Slowly temper the egg mixture with the hot milk, whisking constantly.

4. Return mixture to saucepan and cook until thickened and bubbling (about 3–5 minutes). Boil for 30 more seconds.

5. Remove from heat, add coconut extract and butter, and whisk until smooth.

6. Strain through a fine mesh sieve. Fold in shredded coconut if using.

7. Press plastic wrap onto the surface and chill 2–3 hours or overnight.

Make the Cupcakes:

1. Preheat oven to 350°F (175°C) and line a cupcake pan with paper liners.

2. In a bowl, sift flour, baking powder, baking soda, and salt.

3. Cream butter and sugar until fluffy (5 minutes).

4. Mix in eggs one at a time, then add sour cream, oil, and coconut extract.

5. Add dry ingredients in thirds, alternating with coconut milk, mixing just until combined.

6. Fill liners ⅔ full and bake 18–20 minutes or until a toothpick comes out clean.

7. Cool in pan 5 minutes, then transfer to a wire rack.

Assemble the Cupcakes:

1. Core the center of each cupcake.

2. Fill with chilled custard using a piping bag or zip-top bag.

3. Pipe frosting on top with a round piping tip (Wilton 2A recommended).

4. Gently dip frosted cupcakes in toasted coconut, turning to coat. Serve and enjoy!