Steps:
- Preheat oven to 350 degrees. Line standard muffin tins with paper liners. Whisk dry ingredients, including the sweetened coconut, in a large bowl. Cream butter and sugar with a mixer until light and fluffy. Add eggs, 1 at a time, beating after each addition. Reduce speed to low. Mix coconut milk and vanilla in a bowl. Add dry ingredients to butter mixture in 3 additions, alternating with coconut-milk mixture and ending with dry ingredients. Scrape sides of bowl. Divide batter among muffin cups, filling each 2/3 full. Bake cupcakes until testers inserted into centers come out clean, about 20 minutes. Let cool in tins on wire racks. Once cupcakes are cool, mound Seven-Minute Frosting on tops. Sprinkle with unsweetened coconut. Serve immediately.
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