Coconut Lime Margarita Cupcakes

These Coconut Lime Margarita Cupcakes are like the favorite cocktail in a little baked treat! Made for adults using 1800 Coconut Tequila, freshly squeezed lime juice, and toasted coconut, these cupcakes will be a summer favorite at any BBQ or party.

Jump to:

• Why I Love This Recipe
• Key Ingredient Facts For These CupcakesUnsalted Butter:
• What is Coconut Tequila?
• Substitute for Coconut Tequila
• How to Make Coconut Lime Tequila Frosting
• Substitute for Shortening in the Frosting
• You Can Toast Coconut in the Microwave!
• How to Store These Cupcakes
• Coconut Lime Margarita Cupcakes
• Did you Make This Recipe?

Why I Love This Recipe

One of my all-time favorite cocktails is a Coconut Lime Margarita and because of that, I made a Coconut Lime Margarita Cupcake as well. This baked treat is basically the cocktail in dessert form using the 1800 Coconut Tequila in the batter and the frosting.

These indulgent treats are made for adults since there is tequila in them, but you can make a non-alcoholic version by eliminating the tequila and adding a little more coconut extract. You will still end up with delicious cupcakes that everyone will love.

Key Ingredient Facts For These Cupcakes
Unsalted Butter:

Coconut Tequila- CoconutTequila when added to the cupcake batter imparts a subtle hint of tequila flavor, and a lot of coconut, reminiscent of a margarita. If you don't have coconut tequila, you can substitute regular tequila and a teaspoon of coconut extract.

Unsalted Butter - I always recommend unsalted butter for baking because you can control the level of salt that goes into your baked good. Ensure the butter is at room temperature before making these cupcakes.

Milk - I use whole milk for this recipe but you can also use lower-fat milk or even coconut milk. Same as the butter, ensure the milk is at room temperature for this recipe.

Eggs - Eggs are an essential ingredient in these cupcakes and need to be at room temperature for this recipe.

Fresh Lime Juice and Zest: Freshly squeezed lime juice and lime zest add a tangy and refreshing flavor to the cupcakes. They also contribute to the overall citrusy profile of the dessert.

Cream Cheese - Cream cheese adds a creamy and slightly tangy element to the frosting. Just like the other dairy products, ensure the cream cheese is at room temperature.

Sweetened Shredded Coconut - Shredded coconut is used as a garnish on top of the frosting, adding a crunchy texture and enhancing the coconut flavor in the cupcakes.

What is Coconut Tequila?

Coconut Tequila made by 1800 is very coconutty and much sweeter than traditional tequila. Because of this, it mixes well with citrus as well as other fruit like in my Frozen Strawberry Coconut Margarita. Since this tequila is sweet it's perfect for these cupcakes!

Substitute for Coconut Tequila

If you don't have or can't find coconut tequila, you can substitute 1 tablespoon of regular tequila and 1 teaspoon of coconut extract. I would recommend using silver tequila, however, you can use any tequila you like.

How to Make Coconut Lime Tequila Frosting

This Coconut Tequila frosting is made with vegetable shortening instead of butter because there is less butter flavor to compete with the coconut flavor. I find that vegetable shortening also creates a stiffer frosting that's great for piping. If you don't want to use shortening, you can sub in unsalted butter.

Cream the shortening, tequila, lime juice, and coconut extract for a few minutes until nice and creamy. Add 2 cups of the powdered sugar and mix in completely.

Pour in 2 tablespoons of milk and fully incorporate. Add the remaining powdered sugar, milk, and food coloring and beat until smooth.

Substitute for Shortening in the Frosting

If you do not want to use vegetable shortening in the frosting, you can easily substitute butter in its place. Use the same amount as indicated in the recipe card, just ensure it is at room temperature before mixing.

You Can Toast Coconut in the Microwave!

Did you know you can toast sweetened shredded coconut in the microwave? Place the coconut on a microwave-safe plate and cook for 1 minute.

Remove the plate from the microwave and stir the coconut around. Put the plate back into the microwave for 30-second intervals, stirring after each time to even out the cooking.

Be careful, the plate and coconut are hot! You can also toast coconut in the oven or on the stovetop in a pan.

I always burn it on the stove so the microwave has become my method of choice. Store any unused toasted coconut in an airtight container.

How to Store These Cupcakes

Store these cupcakes in a sealable container in the fridge for 3-4 days. If you have leftover frosting, you can freeze it in a freezer-safe container for up to 3 months.

Did you Make This Recipe?

If you get a chance to make these Coconut Lime Margarita Cupcakes, don't forget to leave a comment below and tag me on Instagram or Facebook. I love to see your creations!

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