Preheat the oven to 350°F (175°C). Line a standard muffin tin with paper cupcake liners and set aside.

In a medium-sized mixing bowl, whisk together the all-purpose flour and cocoa powder until fully combined.

In the bowl of a stand mixer fitted with the paddle attachment, beat the room-temperature salted butter, granulated sugar, baking soda, salt, vanilla extract, and coconut extract on medium-high speed for 3 to 4 minutes, or until the mixture is light and fluffy.

Add the eggs one at a time, beating well after each addition. Scrape down the sides of the bowl as needed to ensure thorough mixing.

With the mixer on low speed, alternate adding the flour-cocoa mixture and the milk in three additions, beginning and ending with the dry ingredients. Mix just until combined; do not overmix.

Divide the batter evenly among the cupcake liners, filling each about halfway full. Bake for 20 to 22 minutes, rotating the pans halfway through. The cupcakes are done when a toothpick inserted into the center comes out clean.

Once baked, tilt each cupcake slightly within the muffin pan so they rest at an angle, allowing them to cool for 10 minutes. Then, transfer the cupcakes to a wire rack to cool completely.

Spread the shredded sweetened coconut evenly on a rimmed baking sheet. Bake at 350°F for approximately 10 minutes, stirring frequently, until golden brown. Set aside to cool.

In a heavy-bottomed saucepan, melt the unsalted butter over medium heat. Stir in the brown sugar and salt. Bring the mixture to a gentle boil while stirring constantly. Reduce the heat and simmer for 2 minutes until the sugar is dissolved. Stir in the milk and return to a boil. Remove from heat and stir in the vanilla extract. Allow the mixture to cool to lukewarm temperature, about 30 to 40 minutes.

Transfer the lukewarm caramel mixture to the bowl of a stand mixer fitted with the paddle attachment. Gradually add the powdered sugar and beat on medium-high speed for 3 to 4 minutes, until the frosting is light and fluffy. Adjust the consistency with a small amount of milk or powdered sugar as needed.

Place the milk chocolate chips in a microwave-safe bowl and heat for 30 seconds. Stir well and continue heating in 10-second intervals until smooth and drizzle-ready.

Transfer the frosting to a piping bag fitted with a decorative tip. Pipe a spiral of frosting on each cooled cupcake. Drizzle the tops with melted chocolate and garnish with toasted coconut.