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Coconut-Chocolate Chip Cupcakes

['1 cup whole wheat pastry flour', '1 cup unbleached all purpose flour', '1/2 cup coconut milk powder (sifted, then measured)', '1 teaspoon baking powder', '1/2 teaspoon salt', '1 1/4 cups (2 1/2 sticks) unsalted butter, room temperature', '1 3-ounce package cream cheese, room temperature', '1 1/2 cups sugar', '1/2 teaspoon vanilla extract', '4 drops coconut flavoring or 3/4 teaspoon coconut extract', '5 large eggs', '2 tablespoons whole milk', '1 3/4 cups bittersweet chocolate chips (10 to 11 ounces)', '1/2 cup (1 stick) unsalted butter, room temperature', '1/2 cup coconut milk powder (sifted, then measured)', '1/4 teaspoon salt', '1/2 teaspoon vanilla extract', '3 drops coconut flavoring or 1/2 teaspoon coconut extract', '4 to 5 cups powdered sugar (16 to 20 ounces)', '4 tablespoons (or more) whole milk', 'Flaked sweetened coconut (optional)']

Preheat oven to 350°F. Line 20 standard (1/3-cup) muffin cups with paper liners. Sift first 5 ingredients into medium bowl. Using electric mixer, beat butter and cream cheese in large bowl until smooth. Gradually beat in sugar, then vanilla extract and coconut flavoring. Beat in dry ingredients (batter will be stiff). Add eggs 1 at a time, beating to blend after each addition. Beat in milk, then stir in chocolate chips. Spoon scant 1/3 cup batter into each paper liner. Bake cupcakes until tester inserted into centers comes out clean, about 22 minutes. Let cool 10 minutes, then turn cupcakes out of pan and cool on rack.
Using electric mixer, beat butter, coconut milk powder, and salt in large bowl until smooth. Beat in vanilla extract and coconut flavoring. Beat in enough powdered sugar, 1 cup at a time, to form very thick frosting. Beat in milk, 1 tablespoon at a time, until frosting is thin enough to spread.
Spread frosting on cupcakes. Sprinkle with flaked coconut, if desired. DO AHEAD: Can be made 1 day ahead. Store cupcakes airtight at room temperature.

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