Heat oven to 350°. Sift the dry ingredients together into a medium mixing bowl, and set the bowl aside. Break eggs into a small bowl, and set aside.
With an electric mixer, cream butter and sugar until light and fluffy, 3 to 5 minutes. With the mixer running, carefully pour in eggs and vanilla and almond extracts.
Mix in the flour mixture and buttermilk by alternating between 1 cup flour and 1/2 cup buttermilk; be sure to start and end with the flour mixture. Add half the coconut, and mix until just incorporated.
Line a cupcake tin with paper liners. Fill each cup with batter; the batter should nearly reach the tops of the cupcake cups. Bake until a cake tester inserted in the center comes out clean, 25 to 30 minutes.
Remove cupcakes from the oven, and allow them to cool briefly in the tin before transferring them to a wire rack to cool completely, about 45 minutes. Generously ice them with cream cheese frosting, and sprinkle with remaining coconut.
Frosting: Place cream cheese in a medium mixing bowl. Gradually add butter, and continue beating until smooth and well blended. Sift in confectioners’ sugar, and continue beating until smooth. Add vanilla, and stir to combine.