Preheat the oven to 350°F (175°C).

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.

Stir in the vanilla extract, lime juice, and lime zest.

In a separate bowl, whisk together the flour, baking powder, coconut, and salt.

Gradually add the dry ingredients to the wet ingredients, mixing until just combined.

Scoop the batter into a muffin tin lined with cupcake liners.

Bake for 20 minutes or until a toothpick inserted comes out clean.

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

Add the lime juice and lime zest, mixing until well combined.

Frost the cooled cupcakes with the lime frosting.