Meet your new favorite Coconut Frosting made with coconut milk, cream cheese, and sweetened flaked coconut. It pipes beautifully, spreads like a dream, and adds tropical flavor to cakes, cupcakes, and bars. Make it ahead, chill, and frost when you’re ready!

Cream cheese frosting is a default for so many desserts because it’s rich, smooth, and not cloyingly sweet. Add coconut and suddenly it tastes like spring… or a beach vacation! The coconut flavor in this frosting comes from a simple trio: coconut extract for a clear flavor, full-fat coconut milk for body and creaminess, and flaked coconut for texture.

Of course, this is delicious on coconut cakes, but it also shines on chocolate cakes, banana cakes, carrot cakes, and all sorts of cupcakes and snack cakes. The mild tang of cream cheese balances the sweetness from the sugar and the creamy flavor of the coconut milk.

Texture matters just as much as taste when it comes to frosting. Starting with room temperature butter and cream cheese sets us up for success, and a quick chill before piping gives the frosting that perfect, clean edge.

If you prefer a cleaner look, leave out the flaked coconut and use it as a garnish around the edges or pressed into the sides after frosting. If you prefer more texture, fold it all in. Either way, you’ll get reliable results for a perfect cake every time!

Ingredients and Substitutions

Below is what you’ll need to make this creamy Coconut Frosting, along with some key ingredient notes and substitutions.

• Unsalted Butter: Make sure the butter is cool room temperature, around 65°F.
• Cream Cheese: Use full-fat bricks of cream cheese, not whipped or the kind in a tub.
• Confectioners’ Sugar
• Salt
• Coconut Extract: Optional, but coconut extract really helps add a clean coconut flavor. If you omit the coconut extract, add vanilla extract instead.
• Coconut Milk: Use unsweetened, full-fat coconut milk, and shake well before using. If the coconut milk separates, whisk until smooth before measuring. Full-fat canned coconut cream also works.
• Sweetened Flaked Coconut: For less sweetness, use unsweetened flaked or shredded coconut.

How to Make Coconut Cream Cheese Frosting

1. Cream the Butter and Cream Cheese. Using an electric mixer, beat the butter and cream cheese until smooth and creamy and no lumps remain, 1-2 minutes.

2. Add Sugar: Add confectioners’ sugar 1 cup at a time with the mixer on low speed. Add the salt, coconut extract, and coconut milk and beat on medium-high speed.

3. Fold in Coconut: Stir in the flaked coconut with a spatula until evenly distributed.

4. Adjust Consistency: Add 1-2 more tablespoons of coconut milk, if needed, to achieve the desired consistency.
5. Chill to Set: Refrigerate for 15-20 minutes before piping for the cleanest swirls.

Flaked Coconut to Thicken Frosting

Fold in the coconut and – give it a minute – the frosting feels thicker. Not just bulked up, but the frosting itself seems to thicken. Sometimes it even firms up enough that you have to add a little more coconut milk to keep it smooth and spreadable. So what are those flakes doing inside the bowl?

Kitchen Chemistry

Sweetened flaked coconut acts as a mild moisture sink: the sugar coating is hygroscopic and the cellulose network of the coconut absorbs surface water, lowering the amount of free water left in the frosting. The viscosity increases over 5-10 minutes, slowly thickening the frosting.

After folding in the flakes, pause for 5 to 10 minutes before adjusting the consistency of the frosting. If it’s still looser than you’d like, add 1-2 tablespoons of confectioners’ sugar; if it’s too stiff, beat in 1-2 tablespoons of coconut milk. Sweetened flakes thicken more than unsweetened; finely chopped or dessicated coconut thickens the fastest.

For ultra-smooth piping, skip folding the coconut into the frosting. Frost first, then press the flakes into the sides and top.

How Much Frosting to Make

This recipe yields about 6 cups of frosting. That’s enough for:

• Cupcakes: 24 cupcakes with bakery-style swirls; use a half-batch for 12 cupcakes.
• Sheet Cake: One generously-frosted 9×13-inch single-layer sheet cake.
• 2-Layer Cake: Enough for a smooth finish and simple borders or swirls on an 8- or 9-inch two layer cake.
• 3-Layer Cake: Make a batch and a half to frost a three-layer 8-inch or 9-inch cake.

Frosting amounts are always approximate. If you love extra-thick frosting or decorative piping, make more than you think you’ll need. It’s much easier to have a little extra frosting than to run out mid-cake!

Tips and Tricks for the Best Coconut Frosting

1. Temperature Check: Aim for 67-70°F for the butter and cream cheese. Too warm leads to a loose frosting.
2. Stir Coconut Milk: Mix the coconut milk well, either by stirring or shaking the can. Coconut milk separates, especially in cooler temperatures.
3. Adjust Texture: Adding a little more sugar results in a firmer frosting, while a little more coconut milk results in a smoother, easier to spread frosting.
4. Storage: Cream cheese frosting requires refrigeration. Store in an airtight container for up to 5 days in the refrigerator, or freeze for up to 3 months. Bring back to room temperature and rewhip before using.
5. Recommended Cakes: Use this frosting on a coconut sheet cake, coconut layer cake, chocolate sheet cake, chocolate layer cake, or banana cake.