Preheat oven to 180oC. Line a 12 x 1/3 cup capacity muffin pan with cupcake patties.
Using an electric mixer on medium setting, mix all ingredients except the milk. Gradually add the milk and mix just until smooth.
Divide the mixture across the12 cupcake patties. A generous tablespoon should be sufficient. The mixture should triple in size once baked.
Bake for 15-20 minutes or until cake skewer inserted into the centre comes out clean. Allow to cool.
Coconut Frosting: Beat butter with icing sugar using an electric mixer. Beat in vanilla essence and milk. Beat until smooth, adding extra milk or icing sugar if necessary. Use a piping bag to decorate swirls onto cooled cupcakes or use a spatula to slather generously over each cupcake.
Sprinkle butter cream with coconut.