Coconut Dream Cupcakes

Directions

1. Preheat oven to 350°. Line 18 muffin cups with paper liners. In a small bowl, beat cream cheese, 1/3 cup sugar and coconut extract until smooth.
2. In a large bowl, cream butter and remaining 1 cup sugar until light and fluffy, 5-7 minutes. Add eggs, 1 at a time, beating well after each addition. Beat in vanilla. In another bowl, whisk flour, baking powder, baking soda and salt; add to creamed mixture alternately with milk, beating well after each addition.
3. Spoon 1 rounded tablespoon of batter into each prepared cup. Drop cream cheese mixture by scant tablespoonfuls into center of each cupcake. Cover with remaining batter, about 1 scant tablespoon each.
4. Bake until a toothpick inserted in the cake portion comes out clean, 16-20 minutes. Cool in pans 10 minutes before removing to wire racks to cool completely.
5. For frosting, in a small bowl, beat cream cheese, butter, water and vanilla until blended. Gradually beat in confectioners’ sugar until smooth. Frost cupcakes; sprinkle with coconut. Refrigerate leftovers.