1. Preheat the oven to 350ºF.
2. In a stand mixer add the eggs and butter. Beat on low for 1 minute. Add the sugar, coconut extract and vanilla extract, blend for 30 seconds.
3. Turn off the mixer. Add the coconut milk and water, turn the mixer on low. Add the baking powder, baking soda, sea salt and flour (one cup at a time). Mix on low until well combined and then increase the speed to medium. Mix for an additional 1-2 minutes, or until your batter has a pudding-like consistency.
4. Line a cupcake pan with cupcake liners and fill them ¾ of the way with the batter.
5. Bake for 20-25 minutes or until a toothpick comes out of the center clean. Allow the cupcakes to cool and in the meantime make the coconut buttercream frosting
6. Add the butter and shortening to a stand mixer and mix on med/low for 1 or so minutes, or until they are blended together.
7. Add the powdered sugar one cup at a time. Add the coconut extract and coconut milk. You may need to scrape the sides of the bowl at this point. Mix on med/high until the frosting is fluffy. Then fold in 1 cup of the shredded coconut, reserve the remaining coconut to top the cupcakes.
8. Frost the cupcakes once cooled and sprinkle the remaining shredded coconut on top.
9. Enjoy!

Recipe Notes: You can store these on the countertop for up to 2 days and then an additional 2 days in the fridge.