Preheat oven to 350 degrees. Line a muffin pan with 15 parchment cupcake liners. (You may need to use two pans).
Cream butter and sugar on medium speed until light and fluffy. Add eggs, one at a time, mixing well after each one. Add the lemon zest and vanilla extract, mix again.
Add the dry ingredients to the wet mixture, mix well. Add sour cream. Beat until combined. Gently fold in coconut.
Pour batter into the prepared pans.
Bake at 350 degrees for 18-22 minutes.
To make the frosting: Beat the cream cheese, butter, lemon zest, vanilla and lemon juice until light and fluffy. Add confectioners’ sugar a little at a time, continuing to beat until smooth and combined. Stir in coconut flakes.