Make the Cupcakes

1. Preheat oven to 175°C (347°F) and line a 12-cup muffin pan with liners.
2. In a large bowl, cream butter and sugar until light and fluffy.
3. Add eggs one at a time, mixing well, then add vanilla extract.
4. In another bowl, sift flour, baking powder, and salt, then mix in shredded coconut.
5. Reduce mixer speed to low and add dry ingredients in thirds, alternating with milk. Do not overmix.
6. In a small bowl, mix vinegar and baking soda (it will bubble), then fold into the batter.
7. Spoon batter into cupcake liners, filling each ¾ full.
8. Bake for 20-22 minutes, or until a toothpick inserted in the center comes out clean.
9. Let cupcakes cool completely before frosting.

Make the Coconut Frosting

10. In a saucepan, cook sugar and flour over medium heat for 2 minutes.
11. Slowly whisk in coconut milk and cook for 3-5 minutes until thickened like pudding.
12. Transfer to a bowl, cover with plastic wrap, and cool to room temperature.
13. In a stand mixer, cream butter for 3 minutes until fluffy.
14. Add the cooled coconut paste in 4 batches, whipping for 4 more minutes.
15. Mix in vanilla extract, salt, and shredded coconut. Add coconut extract for stronger flavor.

Assemble the Cupcakes

16. Transfer frosting to a piping bag and chill for 30 minutes.
17. Frost cupcakes and decorate with shredded coconut or sprinkles.
18. Serve fresh! Store leftovers in an airtight container in the fridge for 2-3 days. Bring to room temperature before serving.