Pre-heat oven to 180°C (160°C fan-forced). Line 18 x ¹/³ cup capacity patty pans with paper cases.
For the cupcakes, place butter, sugar and vanilla in the bowl of an electric mixer. Beat until pale and creamy. Add eggs one at a time, mixing until well incorporated.
Fold in the flour, baking powder and milk, alternately until batter is smooth. Mix through the chocolate chunks. Spoon between paper cases and bake for 18-20 minutes. Allow to cool.
For the frosting, beat cream cheese, butter and vanilla until well combined. Add icing sugar, mixing until smooth. Spread over the top of cooled cupcakes and sprinkle with coconut. Refrigerate until required.
For Christmas trees, line icypole sticks up on a baking paper lined oven tray or benchtop. Place chocolate in a heatproof bowl over a saucepan of gently simmering water. Mix until melted and smooth. Remove from heat and stir in food colouring, mixing until you have the correct colour. Working quickly, pour chocolate into a piping bag with a narrow slit nozzle. Pipe chocolate over icypole sticks in the shape of a Christmas tree. Sprinkle with coconut and red sprinkles. Allow chocolate to set before pressing into the top of half the cupcakes.