Coconut Lime Margarita Cupcakes

12 cupcakes
34 min

These Coconut Lime Margarita Cupcakes are like the favorite cocktail in a little baked treat! Made for adults using 1800 Coconut Tequila, freshly squeezed lime juice, and toasted coconut, these cupcakes will be a summer favorite at any BBQ or party. This baked treat is basically the cocktail in dessert form using the 1800 Coconut Tequila in the batter and the frosting. Although these cupcakes are boozy, you can also make a kid-friendly version without the tequila. This Coconut Tequila frosting is made with vegetable shortening instead of butter because there is less butter flavor to compete with the coconut flavor. I find that vegetable shortening also creates a stiffer frosting that’s great for piping. If you don’t want to use shortening, you can sub in unsalted butter.

Coconut Lime Margarita Cupcake with Coconut Tequila Frosting!

Coconut Lime Margarita Cupcake

Top view of a Coconut Lime Margarita Cupcake with toasted coconut

Coconut Lime Margarita Cupcakes
Recipe details
  • 12  cupcakes
  • Prep time: 10 Minutes Cook time: 24 Minutes Total time: 34 min
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Coconut Lime Margarita Cupcakes
  • 1 cup all-purpose flour
  • ¾ cup sugar
  • 1 ½ tsp baking powder
  • ¼ tsp salt
  • 3 tbsp unsalted butter, room temp
  • ½ cup milk, room temp
  • 1 large egg, room temp
  • ¼ tsp coconut extract
  • 1 tbsp 1800 Coconut Tequila
  • 1 tsbp freshly squeezed lime juice
  • 1 tsbp lime zest
Coconut Tequila Frosting
  • 1 cup vegetable shortening  (you can use butter but the shortening helps with structure and less butter flavor)
  • 2 tbsp 1800 Coconut Tequila
  • ¼ tsp coconut extract
  • 1 tsp freshly squeezed lime juice
  • 4 cups confectioners powdered sugar
  • 3 tbsp milk
  • 3-4 drops green food coloring
  • lime zest for garnish
  • toasted coconut for garnish (optional)
Coconut Lime Margarita Cupcakes
Preheat the oven to 325°F and prepare a cupcake pan with liners.
Place the softened butter and sugar in the bowl of a mixer and beat together until creamed, about 4-5 minutes. While the butter is mixing (if using a stand mixer), sift the flour, baking powder, and salt together into a separate mixing bowl.
Once the butter and sugar have become light and fluffy, add the egg, milk, coconut extract, and tequila and continue mixing. Zest the lime and then juice it. Measure 1 tbsp lime juice and lime zest and add to the batter and mix in. Save the rest of the juice and zest for the frosting.
Add the flour mixture to the butter mixture, 1/3 at a time, and mix in by hand using a spatula or spoon until just mixed in. Do not overmix or your cupcakes will be dense.
Scoop the batter into the prepared liners and bake for 22-24 minutes or until a toothpick comes out clean. Allow the cupcakes to cool in the pan for 5 minutes before transferring to a cooling rack. Once the cupcakes have fully cooled, frost, garnish, and enjoy!
Coconut Tequila Frosting
Add the shortening, tequila, coconut extract, and lime juice to a stand mixer or mixing bowl and beat until combined.
Add 2 cups of the powdered sugar and mix in completely. Add 2 tablespoons of milk and fully incorporate. Add the remaining powdered sugar, milk, and food coloring and beat until smooth.
  • -If you want to make a non-boozy version of these cupcakes, omit the tequila and increase the coconut extract by 1 teaspoon in the batter and frosting.
  • -Find more tips and detail at
Emily |
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  • Sherry Dahlke Sherry Dahlke on May 08, 2021

    Wouldn’t these be like fruit cake? I mean, wouldn’t baking them remove the alcohol and just leave the flavor?

    • Sherry, yes, most of the alcohol bakes out. I haven't been able to get a true answer on how much alcohol is left after baking (although I know it's minimal) and, of course, it depends on how much alcohol and how long you bake it, etc. I try to be mindful of everyone and hope people will enjoy them as they would like :)