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Preheat oven to 350F and line a 12-count muffin tin with paper liners.
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Combine coconut milk and lemon juice in a large measuring glass and set aside.
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In a large bowl using an electric mixer, beat together butter, oil, and sugar until ingredients are well-combined.
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Add eggs, one at a time, stirring well after each addition.
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Stir in vanilla extract.
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In a separate, medium-sized bowl, whisk together flour, baking powder, and salt.
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Gradually alternate adding coconut milk/lemon juice mixture and flour mixture until all ingredients are combined (TAKE CARE NOT TO OVER-MIX!).
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Evenly divide cupcake batter into prepared muffin tin.
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Bake on 350 F for 18 minutes, or until a toothpick inserted in the center comes out with a few moist crumbs.
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Allow cupcakes to cool completely before covering with frosting.
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In a large bowl using an electric mixer, cream together butter and cream cheese until smooth.
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Gradually add powdered sugar, until combined.
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Add coconut milk until desired consistency is reached (don’t add too much milk or it will be too soft to pipe onto your cupcakes).
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Stir in vanilla extract and coconut extract.
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Pipe or spread frosting onto completely cooled cupcakes.
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Sprinkle with toasted coconut (optional). Enjoy!