Preheat your oven to 350°F (176°C) and line a cupcake pan with liners. This recipe makes 24 cupcakes. Set aside.
In a large bowl, whisk together the large eggs using a fork. You want to ensure they are fully mixed before adding anything else.
Add in the sour cream, vegetable oil, and vanilla extract. Stir everything until it's completely combined. You’ll notice the batter will start to become creamy and smooth—this is a great sign!
Now, add in the super moist yellow cake mix and instant vanilla pudding mix. Stir it a few times just to moisten the dry ingredients.
Pour in the water and mix until just combined. The batter will become thicker and richer, which is what we’re aiming for.
Fill each cupcake liner about three-quarters full. This ensures they have enough room to rise without overflowing.
Carefully place the cupcake pan in the center of the oven. Bake for 18 to 23 minutes, or until a toothpick inserted in the center comes out clean or with a few moist crumbs.
Once baked, remove the pan from the oven and let the cupcakes cool in the pan for 5 to 10 minutes.
While the cupcakes are cooling, prepare your toasted coconut. Place the sweetened shredded coconut in a large skillet over medium heat. Stir constantly until the coconut is mostly golden brown.
Now, let’s make the frosting! Using a hand mixer, cream together the room-temperature unsalted butter and cream cheese on medium-high speed until completely smooth.
Add the vanilla extract and salt to the mixture and mix well. With the mixer running on low speed, gradually add in the powdered sugar.
Chill the frosting while the cupcakes finish cooling. This will make it easier to spread.
Once the cupcakes are completely cool, frost them generously with the cream cheese frosting.
Sprinkle about 2 tablespoons of the toasted coconut over each cupcake, gently pressing it down to help it stick.
Finally, place a little bit of frosting on the bottom of each M&M and press it into the center of the cupcake. Add three M&M’s on each cupcake for that perfect festive touch!
