Preheat oven to 325 degrees F (160 degrees C).
Toast Unsweetened Coconut Flakes (1/2 cup) over medium heat in a dry skillet for 10 minutes while stirring.
Combine Butter Recipe Yellow Cake Mix (1 package), Vanilla Extract (1 1/2 teaspoon), Egg (4), Milk (1/2 cup), Vegetable Oil (1/2 cup) and Dark Spiced Rum (1/2 cup) in a large mixing bowl, and beat for 2 minutes on high with an electric mixer.
Stir in 1/3 cup of coconut flakes. Pour the batter into lined cupcake pan. Bake for 30 minutes or until toothpick comes out clean. Allow cupcakes to completely cool to room temperature.
Place your stainless steel mixing bowl in the freezer for 5 minutes.
Mix Powdered Confectioners Sugar (16 ounce), Butter (1 stick), Instant Vanilla Pudding (1.75 ounce) and Dark Rum (4 tablespoon) in cold bowl on medium-low until well blended. Blend on medium-high until frosting is light and fluffy.
Pipe frosting onto the cupcakes and sprinkle with remaining coconut. Serve and enjoy!