1. In a large bowl, cream butter and sugar until light and fluffy. Add eggs, one at a time, beating well after each addition. Stir in food colouring and vanilla. Combine the flour, cocoa, baking soda and salt. Combine buttermilk and vinegar. Add dry ingredients to the creamed mixture alternately with buttermilk mixture, beating well after each addition.

2. Fill foil or paper-lined muffin cups two-thirds full. Bake at 180° for 18-22 minutes or until a toothpick inserted near the center comes out clean. Cool for 10 minutes before removing from pans to wire rack to cool completely.

3. For frosting, in a large bowl, beat cream cheese and butter until fluffy. Add icing sugar and vanilla; beat until smooth. Stir in 1 cup coconut. Frost cupcakes.

4. Toast remaining coconut; sprinkle over cupcakes. Store in the refrigerator.