Coconut Margarita Cocktail and Cupcake

If you like margaritas and you like coconut, then you HAVE to try a this Coconut Margarita Cocktail and Cupcake recipe using coconut tequila! It’s such a perfect combination of sweet and citrus and it smells and tastes amazing!

Coconut Margarita Cocktail and Coconut Margarita Cupcake with Coconut Tequila Frosting
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Apparently, February 22 is (was) National Margarita Day. So I decided to celebrate this very important day with one of my favorite margaritas, the Coconut Margarita! And then I figured since I had the tequila out, why not make a Coconut Tequila Cupcake to go with it?!? And so begins the Adventures of a Cocktail and a Cupcake…Coconut Margarita Cocktail and Cupcake!

coconut margarita and coconut tequila
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First, the Coconut Margarita recipe. It’s very easy to make, you just have to find some coconut tequila. The first time I had a coconut margarita was by the water in Tacoma. We just purchased our boat and had it moored up next to a cute little bar and grill. It was perfect. Perfect seafood, perfect cocktails and a perfect view. I asked the bartender how in the world the coconut margarita had so much flavor and he showed me the bottle of 1800 Coconut Tequila and the rest is history!

coconut tequila margarita with lime

Coconut Lime Margarita

A Coconut Lime Margarita using 1800 Coconut Tequila, fresh lime and shredded coconut!
Course Drinks
Cuisine American, Mexican
Keyword 1800 coconut tequila, cocktail recipe, coconut, coconut lime, coconut margarita, margarita recipe
Prep Time 5 minutes
Total Time 5 minutes
Servings 1 cocktail
Author EmilyFabulous


  • cocktail shaker
  • cocktail glass
  • measuring jigger


  • 2 oz 1800 Coconut Tequila
  • 2 oz fresh lime juice
  • ½ oz agave syrup
  • toasted coconut for the rim
  • lime wedge for garnish


  • Prepare the glass by rimming the top with agave syrup and dip it into the toasted coconut. Add fresh ice to the glass.
    cocktail glass with ice and coconut rim
  • Add the tequila, lime juice, and agave syrup ingredients to a shaker with ice. Shake until nice and cold, about 20-30 seconds, and pour into the prepared glass. Add a lime wedge for garnish, serve and enjoy!
    coconut tequila margarita


coconut margarita cupcake, coconut margarita, agave syrup, coconut tequila and a fresh lime

And if that wasn’t enough lime and coconut for you, here is the recipe for a Coconut Margarita Cupcake with Coconut Tequila Frosting. A boozy baked treat that tastes just like the drink!

coconut margarita cupcake 2

Coconut Margarita Cupcakes

These boozy Coconut Margarita Cupcakes have coconut tequila in the cake and the frosting! If you like coconut and margaritas, you've gotta try these!
Course Dessert
Cuisine American
Keyword coconut cupcake, coconut lime cupcake, cupcake recipe, margarita cupcake
Prep Time 10 minutes
Cook Time 24 minutes
Total Time 34 minutes
Servings 12 cupcakes
Author EmilyFabulous


  • cupcake pan and liners
  • stand mixer or hand mixer
  • 2 mixing bowls


  • 1 cup all-purpose flour
  • ¾ cup sugar
  • tsp baking powder
  • ¼ tsp salt
  • 3 tbsp unsalted butter, room temp
  • ½ cup milk
  • 1 large egg, room temp
  • ¼ tsp coconut extract
  • 1 tbsp 1800 Coconut Tequila (optional)
  • 1 tbsp lime zest
  • 1 tbsp fresh lime juice


  • Preheat the oven to 325° and prepare cupcake pans with liners.
  • Place the softened butter and sugar in the bowl of a mixer and beat together until creamed, about 3 minutes. While the butter is mixing, 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.
  • Add the flour mixture to the butter mixture, 1/3 at a time, and beat until just mixed in. Do not overbeat or your cupcakes will be dense.
  • Zest the lime and then juice it. Measure 1 tbsp lime juice and lime zest and add to the batter and mix in. Save the rest of the juice and zest for the frosting.
  • Scoop the batter into the prepared liners and bake for 22-24 minutes.
  • Allow the cupcakes to cool in the pan for 4-5 minutes before transferring to a cooling rack. Once the cupcakes have fully cooled, frost and enjoy!
coconut margarita cupcake with tequila frosting and lize zest garnish next to a fresh lime slice

Coconut Tequila Frosting

This coconut tequila frosting is perfect for my Coconut Margarita Cupcakes or can be used on any baked good you desire.
Course Dessert
Cuisine American
Keyword coconut lime frosting, cupcake frosting, homemade frosting, tequila frosting
Prep Time 10 minutes
Total Time 10 minutes
Servings 3 cups
Author EmilyFabulous


  • stand mixer or hand mixer
  • mixing bowl


  • 1 cup shortening (you can use butter but the shortening helps with structure and less butter flavor)
  • 1-2 tbsp 1800 Coconut Tequila (optional if you are making for kiddos)
  • ¼ tsp coconut extract
  • 1 tsp fresh lime juice
  • 4 cups powdered confectioners sugar
  • 3 tbsp milk
  • green gel food coloring
  • lime zest for garnish
  • toasted coconut for garnish (see tip below)


  • Add the shortening, tequila, coconut extract, and lime juice to a stand mixer or mixing bowl and whisk for 30 seconds.
  • Add 2 cups of confectioners 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.
top of a coconut margarita cupcake with a swirl of tequila buttercream frosting and fresh lime zest and toasted coconut garnish

Quick tip for toasted coconut

**Did you know you can toast coconut in the microwave?? Place sweetened coconut on a microwave-safe plate, cook for 1 minute. Remove from microwave and stir around. Put back into the microwave for 20-30 second intervals, stirring after each time to even out cooking.

toasted coconut on a yellow plate that was toasted in the microwave

Both of these are indulgent treats that are sure to hit the spot. Don’t have or want the tequila or sharing with kiddos? No problem!! Eliminate the tequila and you will have some delicious coconut lime cupcakes and frosting!

If you enjoyed the first adventure of a Cocktail and a Cupcake, take a look at some of my other posts:

Coconut Margarita Cocktail and Coconut Margarita Cupcake with Coconut Tequila Frosting
Click on the image above to PIN to your Pinterest board!

Certainly, there will be more Adventures of a Cocktail and a Cupcake this year. So if you love recipes, cocktails and cupcakes sign up for my email list! You can also follow me on Instagram @emilyfabulous_blog and thanks for checking out my site!

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