Bake and cool vanilla cupcakes. They need to be completely cool before decorating.
On a small, non-stick pan over medium heat, roast shredded coconut for about 1-2 minutes until some are golden brown.
Remove from heat and allow to cool.
Using an electric mixer, beat together softened butter, icing sugar and milk on medium speed. Gradually increase the speed to high and beat until all ingredients are well-combined.
The ideal buttercream texture is smooth and forms semi-stiff peaks. While mixing if the buttercream is too runny, add more sugar, 1 tablespoon at a time. If it becomes too thick, thin it by adding a small amount of milk, ½ tablespoon at a time, until it reaches the desired smooth texture.
Decorate with Icing
Scoop buttercream into a piping bag with a round tip attached.
Frost a large dollop of buttercream in the centre of each cupcake to form what will become the "nest".
Add Coconut Topping
Place toasted coconut in a small bowl.
Dip each cupcake into the bowl so that the icing "nest" is covered with the coconut shreds.