Preheat your oven to 180°C (350°F) and line a muffin tin with paper liners or lightly grease it.
In a dry skillet over medium heat, toast 1 cup shredded coconut, stirring constantly, until it turns golden and fragrant—about 3-4 minutes. Keep a close eye to prevent burning, then transfer to a plate to cool.
In a large mixing bowl, whisk together the flour, baking powder, and coconut sugar until evenly combined.
In a separate bowl, whisk the eggs until slightly frothy, then add the melted coconut oil and coconut milk. Whisk until smooth and well incorporated.
Pour the wet mixture into the dry ingredients and gently fold until just combined. Do not overmix to keep the muffins tender.
Fold in the cooled toasted coconut, saving a tablespoon for topping later. Mix just enough to distribute evenly.
Scoop the batter into the prepared muffin cups, filling each about two-thirds full. Sprinkle the remaining toasted coconut on top for extra crunch.
Bake in the preheated oven for 20-25 minutes, until the muffins are golden brown and a toothpick inserted in the center comes out clean. The kitchen will fill with a warm, nutty aroma as they bake.
Remove the muffins from the oven and let them cool in the tin for 5 minutes, then transfer to a wire rack to cool completely for about 10 minutes. The tops should be crispy, and the inside moist and tender.
Once cooled, enjoy these muffins warm or at room temperature. The crispy toasted coconut topping provides a delightful crunch with every bite.