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.

coconut margarita cupcake 2

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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.

coconut margarita and coconut margarita cupcake next to a bottle of 1800 Coconut Tequila

Ingredients Needed to Make Coconut Lime Margarita Cupcakes

  • flour
  • sugar
  • baking powder
  • salt
  • unsalted butter room temp
  • milk
  • egg
  • teaspoon coconut extract
  • 1800 Coconut Tequila
  • fresh lime juice and zest (2 limes)
  • vegetable shortening
  • powdered confectioners sugar
  • green food coloring
  • toasted coconut

How To Make Coconut Lime Margarita Cupcakes

Prepare a cupcake pan with liners and preheat the oven to 325ºF. Cream the butter and sugar together in a stand mixer or with a hand mixer for 4-5 minutes. sift the flour, baking powder, and salt together into a separate mixing bowl. Add the egg, milk, coconut extract, and tequila to the sugar and butter and continue mixing. Add the dry ingredients to the wet ingredients in thirds, fully incorporating by hand after each addition. Scoop the batter into the liners and bake for 22-24 minutes. Allow the cupcakes to cool in the pan for 5 minutes before removing them from the pan and cooling on a rack.

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 in2 tablespoons of milk and fully incorporate. Add the remaining powdered sugar, milk, and food coloring and beat until smooth.

the top of a coconut margarita cupcake with toasted coconut and lime zest on top of the frosting

You can Toast Coconut in the Microwave!

Did you know you can toast coconut in the microwave? Place sweetened 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.

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!

1800 coconut tequila

Other Boozy Treats to Check Out

coconut margarita cupcake 2

Coconut Lime Margarita Cupcakes

These boozy Coconut Lime Margarita Cupcakes have coconut tequila in the cake and the frosting! If you like coconut and margaritas, you've gotta try these!
5 from 5 votes
Print Pin Rate
Prep Time: 10 minutes
Cook Time: 24 minutes
Cooling Time: 26 minutes
Total Time: 1 hour
Servings: 12 cupcakes
Calories: 461kcal
Author: EmilyFabulous



Coconut Lime Margarita Cupcakes

  • 1 cup all-purpose flour
  • ¾ cup sugar
  • 1 ½ teaspoon baking powder
  • ¼ teaspoon kosher salt
  • 3 tablespoons unsalted butter, room temp
  • ½ cup milk, room temp
  • 1 large egg, room temp
  • ¼ teaspoon coconut extract
  • 1 tablespoon 1800 Coconut Tequila
  • 1 tablespoon freshly squeezed lime juice
  • 1 tablespoon lime zest

Coconut Tequila Frosting

  • 1 cup vegetable shortening  (you can use butter but the shortening helps with structure and less butter flavor)
  • 2 tablespoons 1800 Coconut Tequila
  • ¼ teaspoon coconut extract
  • 1 teaspoon freshly squeezed lime juice
  • 4 cups confectioners powdered sugar
  • 3 tablespoons milk
  • 3-4 drops green food coloring
  • lime zest for garnish
  • toasted coconut for garnish (optional)


Coconut Lime Margarita Cupcakes

  • Preheat the oven to 325°F and prepare a cupcake pan with liners.
    cupcake pan with cupcakes liners
  • Place the softened butter and sugar in the bowl of a mixer and beat together until creamed, about 4-5 minutes. While the butter is mixing (if using a stand mixer), sift the flour, baking powder, and salt together into a separate mixing bowl.
  • Once the butter and sugar have become light and fluffy, add the egg, milk, coconut extract, and tequila and continue mixing. Zest the lime and then juice it. Measure 1 tbsp lime juice and lime zest and add to the butter mixture and combine. Save the rest of the juice and zest for the frosting.
  • Add the flour mixture to the butter mixture, 1/3 at a time, and mix in by hand using a spatula or spoon until just mixed in. Do not overmix or your cupcakes will be dense.
  • Scoop the batter into the prepared liners and bake for 22-24 minutes or until a toothpick comes out clean. Allow the cupcakes to cool in the pan for 5 minutes before transferring to a cooling rack. Once the cupcakes have fully cooled, frost, garnish, and enjoy!

Coconut Tequila Frosting

  • Add the shortening, tequila, coconut extract, and lime juice to a stand mixer or mixing bowl and beat until combined.
    rice krispie treats pressed into a pan
  • Add 2 cups of the powdered sugar and mix in completely. Add 2 tablespoons of milk and fully incorporate. Add the remaining powdered sugar, milk, and food coloring and beat until smooth.
    coconut margarita cupcake


Serving: 1frosted cupcake | Calories: 461kcal | Carbohydrates: 61.9g | Protein: 2.1g | Fat: 20.9g | Saturated Fat: 6.3g | Cholesterol: 22mg | Sodium: 64mg | Potassium: 94mg | Fiber: 0.4g | Sugar: 52g | Calcium: 50mg | Iron: 1mg

Any nutrition calculations are only estimates using online calculators. Please verify using your own data.

Did you Make These Coconut Lime Margarita Cupcakes?

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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coconut margarita cupcake and 1800 coconut tequila
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