Preheat the oven to 350°F (180°C) and line a muffin tin with paper liners.
In the bowl of an electric stand mixer, cream the butter and sugar until light and fluffy which will take around five minutes.
Add in the eggs one at a time beating well between each addition.
Add in the vanilla extract and mix again.
In a separate bowl mix together the lemon juice and milk and set aside.
Mix together the dry ingredients of flour, baking powder, baking soda and salt and begin to add this to the creamed butter and sugar one large spoonful at a time alternating with the milk mixture.
Once fully combined, fold in the shredded coconut.
Using an ice cream scoop, scoop the mixture into the lined muffin holes then bake in the oven for 18 to 20 minutes until a toothpick inserted into the center of the cupcake comes out clean.
Allow to cool in the tin for 10 minutes then move to a cooling rack to cool completely.
To make the frosting, beat the butter, cream cheese and vanilla extract until smooth then gradually add in the powdered sugar and mix until smooth.
Pipe onto the cooled cupcakes and top with the toasted shredded coconut.