Preheat the oven to 350°F (175°C) and line a muffin tin with cupcake liners.

In a mixing bowl, cream together the butter and sugar until light and fluffy.

Add the eggs one at a time, mixing well after each addition.

In a separate bowl, combine the flour, baking powder, and salt.

Gradually add the dry ingredients to the wet mixture, alternating with lime juice and zest.

Fold in the shredded coconut.

Scoop the batter into the prepared muffin tin and bake for 20 minutes or until a toothpick comes out clean.

In a mixing bowl, beat together the softened butter and powdered sugar.

Add lime juice and zest, mixing until smooth and creamy.

Once the cupcakes have cooled, frost them with the lime frosting.