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Preheat oven to 220°C.
Mix together flour, cocoa, baking powder and salt.
Melt butter over low heat.
In a separate bowl, mix together coconut milk, Horlicks, vanilla, and coconut extract. Stir in the melted butter.
Add flour mixture in batches, mix until smooth.
Fold in shredded coconut.
Fill cupcake liners ⅔ full.
Bake for approx. 25 mins, check with a toothpick.
Set to cool and decorate.