Preheat the oven to 350F. Line two cupcake tins with cupcake liners.
In a large skillet, add the coconut and place over low heat.
Toast the coconut, stirring occasionally so that the coconut doesn't burn. Toast the coconut until lightly golden. Set aside one cup of the coconut for decorating.
In the bowl of stand mixer fitted with the paddle attachment, on medium low speed, beat together the butter and sugar until light and fluffy, about 3 minutes
Meanwhile, in a large bowl, whisk together the flour, cake flour, baking powder and salt.
In a large measuring cup, whisk together the coconut milk, half and half, vanilla, and coconut extract.
Add the eggs, one at a time, to the butter/sugar mixture, scraping the bowl after each addition.
On low speed, add the dry ingredients to the butter mixture in 3 parts, alternating with the wet ingredients, scraping the bowl after each addition.
Add the toasted coconut, reserving 1 cup for decorating.
Give the batter a final stir with a spatula to make sure everything is well incorporated.
Fill the cupcake lines ⅔ full. Bake cupcakes for 18-20 minutes or until the tops look just set and a toothpick comes out with few moist crumbs.
Cool the cupcakes in the pan for 5 minutes. Transfer the cupcakes to a cooling rack to finish cooling.