Step 1: Prepare the Cupcakes: Preheat oven to 350°F (175°C) and line a 12-cup muffin pan with cupcake liners. In a medium bowl, whisk together flour, baking powder, baking soda, and salt. In a large bowl, beat butter and sugar until creamy. Add eggs, one at a time, then vanilla extract. Mix in sour cream and milk until smooth. Gradually fold in dry ingredients until just combined. Avoid overmixing. Divide batter evenly among the cupcake liners and bake for 18–20 minutes or until a toothpick inserted in the center comes out clean. Allow cupcakes to cool completely on a wire rack before frosting.
Step 2: Prepare the Frosting: Beat butter until creamy, then gradually add powdered sugar, one cup at a time. Add milk, vanilla extract, and a pinch of salt, beating until smooth and fluffy.
Step 3: Frost the Cupcakes: Spread or pipe frosting generously onto each cooled cupcake. Press shredded coconut gently onto the frosting to create “bunny fur.”
Step 4: Decorate the Bunnies: Use mini chocolate chips or candies for eyes. Place a small pink candy or icing dot for the nose. Add marshmallow or fondant ears at the top to complete the bunny look.