Preheat the oven to 350°Line muffin pans with paper liners.
In a medium bowl, whisk together the flour, baking powder, and salt.
In the bowl of a stand mixer, beat the sugar and vegan margarine until light and fluffy, about 3 minutes. Then, add vanilla extract and your egg replacer of choice.
With the mixer on low speed, alternate the flour mixture with the coconut milk. Stir in the shredded coconut and fill the cupcake papers about ¾ full.
Bake for 20 to 23 minutes or until a toothpick inserted comes out clean. Cool the cupcakes in the pan for a few minutes, then remove and cool completely on a wire rack before frosting.
Beat the cream cheese until smooth, then add the powdered sugar until combined. Finally, add the vanilla and enough coconut milk to create a fluffy frosting.