How to Make It
Preheat oven to 350°F. Beat butter with a heavy-duty stand mixer on medium speed until fluffy; gradually add sugar, beating until well blended. Add egg yolks, 1 at a time, beating just until blended. Add extracts; beat until blended.
Stir together flour, baking powder, and salt in a bowl; add to butter mixture alternately with coconut milk, beginning and ending with flour mixture. Beat at low speed just until blended after each addition. Stir in coconut and 1 cup of the pecans.
Beat egg whites on high speed until stiff peaks form; fold one-third of egg whites into batter. Gently fold in remaining beaten egg whites just until combined. Place 30 paper baking cups in 3 (12-cup) muffin pans; spoon batter into cups, filling two-thirds full.
Bake in preheated oven until a wooden pick inserted in centers comes out clean, 18 to 20 minutes. Remove from pans to wire racks; cool completely, 30 minutes.
Prepare the Coconut-Cream Cheese Frosting: Beat 1 (8-oz.) pkg. cream cheese, softened, and 1/2 cup salted butter, softened, with an electric mixer on medium speed until creamy; add 3 Tbsp. whole milk and 1 tsp. vanilla extract, beating well. Gradually add 1 (16-oz.) pkg. powdered sugar, sifted, beating until smooth. Stir in 1 (7-oz.) pkg. sweetened flaked coconut.
Spread Coconut-Cream Cheese Frosting onto cupcakes, and sprinkle with remaining 1/3 cup toasted pecans.