DIRECTIONS:
For reduced coconut milk:Bring coconut milk to boil in large deep saucepan over medium-high heat (coconut milk will boil up high in pan).
Reduce heat to medium/low; boil until reduced to 1 cup, stirring occasionally, 25 to 30 minutes.
Remove from heat; cool completely. Transfer to small bowl. Cover; chill (coconut milk will settle slightly as it cools). DO AHEAD:
Can be made 2 days ahead. Keep chilled.
(NOTE: don't try to cut corners by not waiting for the coconut milk to cool completely. It will affect the texture.)
For cupcakes:Position rack in center of oven; preheat to 350°F. Line eighteen 1/3-cup muffin cups with paper liners. Whisk flour, baking powder, and salt in medium bowl. Using electric mixer, beat butter in large bowl until smooth. Add sugar; beat on medium-high speed until well blended, about 2 minutes. Add 2 eggs, 1 at a time, beating well after each addition and occasionally scraping down sides of bowl. Add vanilla extract and remaining egg. Add half of flour mixture; mix on low speed just until blended. Add 1 cup reduced coconut milk; mix just until blended. Add remaining flour mixture; mix on low speed just until blended.
Divide batter among muffin cups.
Bake cupcakes until tops spring back when gently touched and tester inserted into center comes out clean, about 15-18 minutes. Transfer cupcakes in pans to rack; cool 10 minutes. Carefully remove cupcakes from pans and cool completely on rack.
For frosting:In a large bowl beat butter until smooth. Add all other ingredients (powdered sugar, 1/2 tsp. salt, cream of coconut, 1 tsp. vanilla extract) and mix until smooth. (Add more cream of coconut as needed for smoother frosting.)
Ice cupcakes and add some toasted coconut flakes for that final touch.
Enjoy!
