Pour the coconut on a parchment lined sheet tray and place in oven until golden brown (7-10 minutes.)
Stir the coconut milk and pour into a one cup liquid measure with the apple cider vinegar, and set aside.
In the bowl of a mixer, sift together the dry ingredients.
Add the sugar and toasted coconut, and mix together.
To the coconut milk add the oil, vanilla, and coconut extract and pour into the bowl of the mixer
Mix until incorporated, but do not over mix.
Pour cupcake batter 3/4 of the way up in a lined cupcake tin.
Bake for 15-20 minutes, or until a toothpick comes out clean.
Let the cupcakes cool before frosting
For the frosting: Put the butter and the cream cheese in the bowl of a mixer and mix with a paddle attachment on medium for 1 minute.
Add 2 cups of sifted confectioners sugar and 2 tablespoons of coconut milk and mix on high until incorporated.
Add the remaining 2 cups of sifted confectioners sugar and mix on high, adding the coconut milk 1 tablespoon at a time until you reach the desired creamy whipped texture. * Note the more air incorporated into the frosting the lighter and more airy it is, so don't be afraid to whip it. Whip it good.