• Preheat your oven to 325°F. Grease or line a standard 12-cup muffin tin and set it aside.

Make the cupackes.

• Place the granulated sugar and coconut chips in a blender or food processor, and pulse until the coconut chips are no longer visible, and have become part of the sugar. The sugar will clump a bit. Set it aside briefly.
• In a small bowl, place the flour, xanthan gum, baking powder, baking soda, and salt in a small bowl and whisk to combine well. Set the dry ingredients aside.
• In a large bowl, place the butter, prepared coconut and sugar mixture, egg whites and optional coconut flavoring, and beat very well with a handheld mixer.
• Add the flour mixture in two parts, alternating with the buttermilk in between parts and beating until just combined after each addition.
• Using a silicone spatula or large spoon, turn the batter over by hand a few times to ensure that all of the dry ingredients have been incorporated into the batter. The batter should be relatively soft but thick and a bit lumpy.
• Fill the prepared wells of the muffin tin just under 3/4 of the way full with batter.
• Shake the tin back and forth to evenly distribute the batter in each well. Place the cupcakes in the center of the preheated oven and bake until very lightly golden brown and the top springs back when pressed gently in the center (about 18 minutes).
• Remove the muffin tin from the oven and allow the cupcakes to cool for about 10 minutes in the pan before transferring to a wire rack to cool completely.
• Lower the oven temperature to 250°F.
• Place the remaining 2 cups of coconut chips on a clean, rimmed baking sheet and spread them into an even layer.
• Place in the center of the oven and bake until lightly toasted, about 7 minutes.
• Stir at least once during baking to ensure even toasting, then remove the toasted coconut chips from the oven and allow to cool.

Make the frosting.

• In the bowl of your stand mixer fitted with the paddle attachment, place the 8 tablespoons butter and 6 tablespoons coconut oil and beat on high speed for about 3 minutes or until light and fluffy.
• Add the confectioner’s sugar, pinch of salt, and (optional) coconut flavoring, and beat on high speed until the frosting is very light and fluffy again (about 10 minutes).
• Once the cupcakes are completely cool, place a generous dollop of frosting on top of each with a spoon or using a pastry bag fitted with a large open piping tip.
• Press down on the frosting with the spoon to create a small well in the center of each. Sprinkle the cupcakes generously with the toasted coconut chips.