Moist and fluffy coconut cupcakes topped with a zesty lime buttercream frosting and optional toasted coconut for a tropical twist—these cupcakes are as refreshing as they are indulgent. I love making these when I want something fun, flavorful, and a little bit out of the ordinary. The combination of creamy coconut and tangy lime makes each bite bright and satisfying.

Why You’ll Love This Recipe

I like this recipe because it brings together the richness of coconut with the brightness of lime. The cupcakes turn out soft and tender, thanks to coconut milk and shredded coconut blended right into the batter. The frosting is incredibly smooth with just the right balance of sweetness and tartness from fresh lime juice and zest. And if I want a little crunch, I top it all with toasted coconut—it’s the perfect finish.

Ingredients

(Here's a tip: Check out the full list of ingredients and measurements in the recipe card below.)

For the Coconut Cupcakes:

½ cup shredded sweetened coconut
1 cup all purpose flour
2 teaspoons baking powder
¼ teaspoon salt
½ cup unsalted butter, room temperature
¾ cup granulated sugar
2 large eggs
1 teaspoon vanilla extract
½ teaspoon coconut extract
⅔ cup coconut milk, mixed very well

For the Lime Buttercream Frosting:

⅓ cup sweetened shredded coconut, for decorating (optional)
¾ cup unsalted butter, softened to room temperature
1.5 tablespoons lime zest
3.5‑4.5 cups powdered sugar, sifted
2 tablespoons lime juice, freshly squeezed
1 tablespoon whipping cream, if needed
2‑3 drops green food coloring, optional

Directions

I preheat the oven to 350 °F (about 175 °C) and line a muffin pan with paper liners.
I process the ½ cup shredded coconut in a food processor until finely ground.
Then, I whisk together the flour, ground coconut, baking powder, and salt in a medium bowl.
In a large bowl, I beat the butter and sugar with an electric mixer until fluffy.
I add in the eggs, vanilla extract, and coconut extract, mixing until combined.
On low speed, I alternate adding the dry ingredients and the coconut milk, mixing until just combined.
I spoon the batter into the liners and bake for 15‑17 minutes, or until a toothpick comes out clean.
If I want toasted coconut on top, I bake the remaining shredded coconut at 325 °F (163 °C) for 5‑10 minutes, watching carefully.
While the cupcakes cool, I start the frosting: I beat the butter until very fluffy, then add lime zest.
I gradually add powdered sugar, one cup at a time, mixing well between each addition.
I beat in the lime juice and, if needed, a bit of cream to get the right consistency.
Once the cupcakes are cool, I frost them with a piping bag or knife and sprinkle with toasted coconut if using.

Servings and timing

This recipe makes 12 cupcakes.

Prep Time: 45 minutes
Cook Time: 15 minutes
Total Time: 1 hour

Variations

I sometimes add a few drops of coconut extract to the frosting for a double coconut kick.
If I’m not into food coloring, I skip the green tint altogether—the flavor stands on its own.
I’ve also swapped the lime for lemon zest and juice when I want a slightly different citrus flavor.
For a dairy-free version, I use plant-based butter and coconut cream instead of whipping cream.

Storage/Reheating

I store the frosted cupcakes in an airtight container at room temperature for up to 2 days or in the refrigerator for up to 4 days. If refrigerated, I let them come to room temperature before serving so the buttercream softens. I don’t recommend freezing frosted cupcakes, but I do freeze the unfrosted cupcakes for up to 2 months—just thaw and frost when ready.

FAQs

What type of coconut milk should I use?

I always use full-fat canned coconut milk and make sure to mix it well before measuring. It gives the cupcakes richness and moisture that light versions can’t match.

Can I make these cupcakes in advance?

Yes, I often bake the cupcakes a day ahead and frost them the next day. Just keep them covered to stay moist.

Do I have to toast the coconut topping?

No, but I love the added texture and nutty flavor it brings. If I’m in a hurry, I skip it and they’re still delicious.

Can I use bottled lime juice?

Fresh lime juice gives the frosting a bright and clean flavor, but if I’m out of limes, I’ve used bottled in a pinch—it still works, just not as vibrant.

How do I make the frosting less sweet?

I reduce the powdered sugar slightly and add a pinch of salt to balance it. A little extra lime juice also cuts through the sweetness nicely.

Conclusion

These coconut cupcakes with lime buttercream are a tropical treat I keep coming back to. They’re fluffy, flavorful, and fun to make. Whether I’m baking for a party, a picnic, or just because I’m craving something sweet, these always deliver a fresh, citrusy punch with a soft coconut base. Give them a try and let the flavors take you somewhere sunny.