I start by combining the flour, baking powder, baking soda, and salt in a bowl. This mix ensures the cupcakes rise evenly and have a perfect tender crumb.
Next, I whisk together the eggs and sugar until pale and slightly thick. Then I add the oil, lime zest and juice, coconut extract, and coconut milk — this gives the batter its irresistible tropical flavor.
Now I gently fold the dry ingredients into the wet mix, stirring until just combined. Over‑mixing can make cupcakes dense, so I keep it light!
I line my cupcake pan with liners and fill each about two‑thirds full with batter. Then they go into a preheated oven at 400°F (204°C) for about 14 minutes until springy to the touch or a toothpick comes out clean.
Once cupcakes are cool, I beat cream cheese until smooth, then add butter a tablespoon at a time. After that, I pour in coconut extract and powdered sugar and mix until velvety.
Finally, I pipe on the creamy frosting, add toasted coconut, and press a fresh lime wedge on top — beautiful and delicious!