To make the coconut cupcakes:

Preheat the oven to 175°C (347°F) and line a cupcake tin with liners.

Cream butter and sugar until light and fluffy. Gradually add eggs and vanilla extract, mixing well after each addition.

Sift the dry ingredients together and mix in the shredded coconut.

Add the dry ingredients to the wet ingredients in thirds, alternating with the milk. Mix just until combined.

Combine baking soda and vinegar in a small bowl, then fold into the batter.

Fill each cupcake cavity ¾ full and bake for 20-22 minutes, or until a toothpick comes out clean.

Allow cupcakes to cool completely on a rack.

To make the coconut frosting:

Combine sugar and flour in a saucepan, then add coconut milk. Cook over medium heat until the mixture thickens.

Let the mixture cool to room temperature.

Cream softened butter in a stand mixer until light and fluffy.

Gradually add the cooled paste to the butter, then add vanilla extract and shredded coconut. Whip until smooth.

Chill the frosting for 30 minutes, then frost the cooled cupcakes.