In the bowl of an electric mixer fitted with the paddle attachment, cream the butter and sugar on high speed until light and fluffy, about 5 minutes. With the mixer on low speed, add the eggs, 1 at a time, scraping down the bowl after each addition. Add the vanilla extract and mix well.
In a separate bowl, sift together the flour, baking powder, baking soda, and salt. In 3 parts, alternately add the dry ingredients and the buttermilk to the batter, beginning and ending with the dry. Mix until just combined. Fold in 4 ounces of coconut.
Line a muffin pan with paper liners. Fill each liner 1/3 of the way with batter. Press in one truffle. Fill the liner up 3/4 of the way full, covering the truffle. Bake for 18-22 minutes, until the tops are brown and a toothpick comes out clean. Allow to cool in the pan for 15 minutes. Remove to a baking rack and cool completely.
For the White Chocolate Cream Cheese Frosting
In the bowl of a stand mixer fitted with the paddle attachment, cream the butter for 3-5 minutes, until completely smooth and lightened in color.
Add in the cream cheese and mix for about 30 seconds, until there are no more lumps. Don't overmix here or you icing will be too soft to pipe. Add in the white chocolate and mix until it is just incorporated.
Add the powdered sugar, vanilla, and heavy cream, and mix for about 1 minute or until the icing is creamy and smooth. Add more heavy cream if necessary.
Frost the cupcakes however you desire, and sprinkle with coconut. Enjoy!
Notes
For the truffles, I used Raffaello truffles and it worked amazingly. You could also use any kind of white chocolate or coconut truffle here, such as Lindt White Chocolate or Lindt Coconut truffles.