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1. Preheat oven to 350 degrees F. Line twenty-four 2-1/2-inch muffin cups with paper bake cups; set aside. In a medium bowl, stir together flour, baking powder, baking soda, and salt; set aside.
2. In a large bowl, beat butter with an electric mixer on medium to high speed for 30 seconds. Add sugar and vanilla. Beat until combined, scraping side of bowl occasionally. Add eggs one at a time, beating well after each addition. In a small bowl, stir together sour cream and milk. Alternately add flour mixture and sour cream mixture to butter mixture, beating on low speed after each addition just until combined. Stir in crumbled cookies and macadamia nuts. Spoon batter into the prepared muffin cups.
3. Bake for 18 to 20 minutes or until a toothpick inserted near the centers comes out clean. Cool in pans on wire racks for 5 minutes. Remove cupcakes from pans; cool completely on wire racks. If desired, remove paper bake cups.
4. Prepare Coconut Frosting; set aside. Spoon pineapple preserves into a decorating bag fitted with a large round or open star tip. Push tip into the top of each cupcake and force some of the preserves inside cake.
5. Generously spread the frosting onto tops of cupcakes. Sprinkle with toasted coconut. Makes 24 cupcakes.
1. In a large mixing bowl prepare frosting mix according to package directions. Beat in coconut extract. Gradually add powdered sugar, beating well.