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Preheat the oven to 350°F. Beat butter and sugar: Beat the butter until light and fluffy, about 3 minutes. Add sugar and beat until light and fluffy again, another 3 minutes, scraping down the sides halfway through to ensure even mixing. Beat in eggs, one at a time: Add the eggs, one at a time, beating for 30 seconds each. Be sure to scrape down the sides after each egg to ensure even mixing. Combine dry ingredients: Whisk together the flour, salt, and baking powder in a bowl. Combine coconut milk and vanilla: Stir together 1 cup of a well shaken can of coconut milk and a teaspoon of vanilla in a separate bowl. Alternating dry ingredients and coconut milk mixture, add to butter sugar mixture, fold in coconut: Add 1/3 of the dry ingredients to the butter sugar mixture and mix, then add 1/2 of the coconut milk mixture. Continue alternating with the wet and dry mixtures, ending with the dry. Stop mixing once just as the ingredients become incorporated; do not over-mix! Fold in the sweetened desiccated coconut. Fill cupcake liners: Place cupcake liner papers into muffin tins. Scoop the batter into the cupcake papers about one half to three-quarters of the way full. Bake: Bake at 350°F for 18-22 minutes, rotating the pan after the first 15 minutes to ensure even baking. Check with a toothpick to see if the cupcakes are done. If the toothpick comes out of the cupcake clean, then they're ready. Allow the cupcakes to cool for a minute or two in the pan, then transfer to a wire rack to cool completely. While the cupcakes are cooling, make the cream cheese frosting: Beat cream cheese and butter: Beat the cream cheese for a minute. Then add the butter and beat an additional 3 minutes. Scraped down the sides and bottom of the bowl. Add powdered sugar: Slowly add the powdered sugar, taste as you go adding more sugar until you have reached the desired sweetness. Add coconut, spread onto cupcakes: Fold in the coconut. Spread onto cooled cupcakes. Sprinkle on a bit of extra shredded coconut on top to serve.
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