These sweet cupcakes lend a bit of whimsy to your Easter decor and look festive when placed on a tiered table centerpiece. For a bit of a twist, the egg candies can be replaced with Marshmallow Peeps or chocolate chicks.
Position a rack in the middle of the oven and preheat to 350°F. Spread the coconut on a baking sheet and toast until lightly browned, about 8 minutes.
In a large bowl, whisk together the flour, baking powder and salt. In a small bowl, stir together the sour cream, oil and vanilla. In another bowl, with an electric mixer on medium-high speed, beat the sugar and butter together until light and fluffy, 2–3 minutes. Add the eggs, one at a time, beating well after each addition. Add the flour mixture in 3 parts, alternating with the sour cream mixture in 2 parts, beating on low speed until just combined; scrape down the sides of the bowl as needed.
Divide the batter evenly among lined muffin cups, filling each about three-fourths full. Bake until lightly golden on top and a toothpick inserted in the center of a cupcake comes out clean, 18–20 minutes. Let the cupcakes cool in the pan on a wire rack for 5 minutes. Transfer the cupcakes to the wire rack and let cool completely, about 1 hour.
Frost the cupcakes with the buttercream (recipe below). Top each cupcake with a ring of toasted coconut. Place an Easter egg candy or candies in the center of each nest and serve. The finished cupcakes can be refrigerated in an airtight container for up to 2 days; bring to room temperature before serving.
In a medium bowl, use a hand-held mixer on medium speed to beat together the confectioners' sugar and butter until blended. Beat in the vanilla, then beat in enough of the cream to achieve a soft consistency suitable for spreading.