One of my favourite summer flavour combinations is lime and coconut. It must be a bit of nostalgia, dancing to the Dannii Minogue version of Coconut in the hot Australian sun during summer vacation, but these lime-coconut cupcakes just taste like summer, and that’s not a bad thing at all.

We’ve tried two variations of this recipe, one with coconut extract and one with the coconut flavour coming from the addition of coconut milk:

Lime Coconut Cupcakes Version #1: 1 teaspoon good quality coconut extract and 3/4 cup whole milk
Lime Coconut Cupcakes Version #2: 3/4 cup coconut milk

I personally preferred the second version, but the coconut flavour was barely perceptible. As long as you used a good quality coconut extract (naturally flavoured), you will end up with a great quality cupcake with either version of this lime coconut cupcake.

I also always go to coconut oil, butter, or olive oil for baked goods. I love the flavour and airy, soft texture that olive oil lends to cakes, but feel free to substitute your own choice of good quality oil in it’s place.

Lime Coconut Cupcake Ingredients

For the Cupcakes:

All-purpose flour
Baking powder
Baking Soda
Salt
Eggs, room temperature
White sugar
Olive Oil
Lime Zest
Lime Juice
Coconut Extract
Whole Milk

For the Frosting:

Cream Cheese, softened
Butter, room temperature
Powdered icing sugar
Heavy Whipping Cream
Coconut Extract
Toasted Coconut, optional garnish
Small Lime Slices, optional garnish

Scroll down to the printable recipe card for full measurements.

Kitchen Tools You May Find Helpful

Piping bag with star tip <– a basic piping set will have all you need
Measuring cups and spoons
Electric mixer<– this is a great hand mixer if you don’t want to make the investment into a stand mixer
Large mixing bowl
Green and White Striped Cupcake Liners
Sharp kitchen knife
Cupcake pan
Cupcake scoop
Cooling racks <– I have and love these tiered cooling racks, they save so much counter space and are also oven-safe

How to Make Lime Coconut Cupcakes

Preheat your oven to 350F and line a cupcake tray with your favourite cupcake liners — we usually use reusable silicone liners, but this time we used green and white striped paper liners.

Combine all dry ingredients together. Don’t be tempted to skip on the salt!

In a separate bowl, whisk the eggs and sugar until light and fluffy, then add the oil, lime zest and juice, and coconut milk.

Combine the dry and wet ingredients and stir until just incorporated.

Add the cupcake batter to the prepared liners with an ice cream scoop until 3/4 full.

Remove to a cooling rack and allow to cool before frosting with the coconut-lime frosting.

How to Make Coconut Lime Frosting

Beat the cream cheese using a mixer at medium speed, adding butter 1 Tbsp at a time.

Add good quality coconut extract and powdered sugar, mix until combined

Try not to over-beat the frosting, but if you do, refrigerate the frosting before icing the cupcakes.

Place frosting into a pastry bag with your preferred frosting tip (I used a Wilton 27, but any closed star-tip will result in a similar finish), and swirl overtop of the cupcakes, squeezing evenly and stopping whenever you need to. Flick your wrist at the end to achieve a nice frosting tip, and if necessary, wet your finger to shape the tip slightly.

Garnish with a wedge of lime and sprinkle with toasted coconut.

Grab your free printable for our lime coconut cupcakes recipe:

Yield: 24 cupcakes

Lime Coconut Cupcakes

Name: Lime Coconut Cupcakes
Prep time: 20 min
Cook time: 20 min
Total time: 1 h
Yield: 24
Cuisine: Cupcake Recipe
Ingredients: 1¼ cup flour; 1 teaspoon baking powder; ½ teaspoon baking soda; ½ teaspoon salt; 2 eggs, at room temperature; ¾ cup cane or coconut sugar (can use granulated white sugar); ½ cup olive oil; 3 teaspoon lime zest; 4 Tbsp lime juice (1 medium lime); ¾ cup coconut milk (or 1 teaspoon organic coconut extract and ¾ cup whole milk); 8 oz cream cheese; ½ cup unsalted butter, at room temperature; 1½ teaspoon organic coconut extract; 1½ cups powdered sugar; 2 to 4 Tablespoons toasted coconut (optional garnish); Small Lime slices or wedges (optional garnish)

A fun tropical cupcake recipe with vibrant lime and coconut flavors topped with a fresh coconut frosting.

Prep Time 20 minutes

Cook Time 20 minutes

Additional Time 20 minutes

Total Time 1 hour

Ingredients

Coconut-Lime Cake Ingredients

1¼ cup flour
1 teaspoon baking powder
½ teaspoon baking soda
½ teaspoon salt
2 eggs, at room temperature
¾ cup cane or coconut sugar (can use granulated white sugar)
½ cup olive oil
3 teaspoon lime zest
4 Tbsp lime juice (1 medium lime)
¾ cup coconut milk (or 1 teaspoon organic coconut extract and ¾ cup whole milk)

Frosting Ingredients

8 oz cream cheese
½ cup unsalted butter, at room temperature
1½ teaspoon organic coconut extract
1½ cups powdered sugar
2 to 4 Tablespoons toasted coconut (optional garnish)
Small Lime slices or wedges (optional garnish)

Instructions