1 box (15 ounces) white cake mix
1 1/4 cups coconut milk or water
1/2 cup vegetable oil
1 box (3.4 ounces) instant coconut cream pudding
zest of 2 limes
2 1/2 cups shredded coconut, divided
1 container (12 ounces) Cool Whip
1 stick butter, at room temperature
1 teaspoon coconut or vanilla extract
1 1/2 cups powdered sugar
Preheat the oven to 350 degrees. Line cupcake pans with liners. Use a mixer and beat together the first 5 ingredients in a large bowl for about 2 minutes, or until the batter is smooth. Fold in lime zest and 3/4 cup shredded coconut. Fill cupcakes liners up about two-thirds of the way. Bake for 18 to 22 minutes or until the cake springs back when lightly pressed in the center. Let cool.
For the frosting, beat together powdered sugar and butter. Add Cool Whip and coconut or vanilla extract and beat until smooth. Toast remaining coconut. Sprinkle it out on a jelly roll pan and bake at 350 degrees for 5 to 10 minutes or until it starts to get golden. Use a piping bag and tip to pipe on or hand frost cupcakes or cake, and sprinkle a little toasted coconut on top of each cupcake. Refrigerate cupcakes until ready to serve.