Preheat the oven to 375°F. Line a 12-cup muffin tin with papers and spray the insides, or lightly grease the muffin tin. If you need to use two racks in your oven, adjust to divide the oven into thirds for even baking. Otherwise place rack in center of oven.
Beat the butter and sugar together until light and creamy. Beat in the eggs, one at a time, mixing well after each addition and stopping to scrape the sides and bottom of the bowl.
In a separate bowl, whisk together the dry ingredients. Add the dry ingredients to the butter/egg mixture. Stir in applesauce a little at a time until well blended. Stir in slowly to test the liquid capacity of the applesauce - some are more watery than others..
Spoon the batter into the prepared muffin pan. Bake for approximately 25 minutes, or until a cake tester inserted into a cupcake comes out clean. Remove the cupcakes from the oven, and cool in the pan on a rack for five minutes. After 5 minutes, remove the cupcakes from the pan and return to the rack to finish cooling completely before frosting.
Yield: 12 cupcakes.
Cream Cheese and Coconut Frosting
Mix the cream cheese, sugar, extract and oil together, beating until smooth. The frosting will be a little thinner than you may be accustomed to, but it needs to be to catch and hold the coconut. Use to frost the tops of the cupcakes. Put the coconut in a bowl. Hold each cupcake upside down and press gently into coconut.
Adapted from King Arthur Flour
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