Preheat your oven to 350°F (175°C). Line a cupcake pan with paper liners.
In a mixing bowl, whisk together the flour, sugar, baking powder, baking soda, and salt.
Add the softened butter and mix until the mixture resembles coarse crumbs.
In another bowl, beat the eggs, coconut milk, crushed pineapple, and vanilla extract. Add to the flour mixture and mix until just combined.
Fill the cupcake liners about ⅔ full with the batter. Bake for 20-25 minutes, or until a toothpick inserted into the center comes out clean. Let cool completely.
For the frosting, beat the softened butter until creamy. Gradually add the powdered sugar, coconut milk, and vanilla extract. Beat until smooth and fluffy.
Frost the cooled cupcakes and sprinkle with sweetened shredded coconut.