Line two muffin tins with cupcake liners.
To prepare the coconut In a small saucepan, bring the coconut milk to a boil. Turn off heat. Add the coconut, cover and let steep for 30 minutes. Pour milk and coconut the container of the food processor fitted with the metal blade and pulse 10 to 12 times so the coconut is finely chopped. Transfer to a measuring cup and put in the fridge for 15 minutes to cool to room temperature while you prep the rest of the cake.
In a medium sized bowl, sift baking mix, baking powder, salt and pudding mix three times (or use a triple sifter once). Set aside.
Cut butter into 1 inch pieces and put them in a large bowl. Soften with a mixer on low speed. Increase the speed to medium high and cream until light in color, about 1 ½ to 2 minutes. While still mixing, add sugar 1 tablespoon at a time, taking about 4 minutes to blend it well.
Add the egg, blend for 30 seconds.
Add the coconut yogurt, blend for 30 seconds. Add coconut extract.
With the mixer on low, add about half of the dry ingredients. When incorporated, add the coconut mixture. Then half of what is remaining of the dry, then the rest of the coconut mixture, ending with the remaining dry. In other words alternate between the dry and wet, starting and ending with the dry mix. Mix JUST until incorporated after each addition. Scrape the sides of the bowl as necessary.
Bake at 350 degrees for 18-20 minutes. If making a cake, bake for 25 to 30 minutes.
