Preheat oven to 350F and line a cupcake pan.
Combine Dairy Dairy and water then set aside.
In one bowl, combine all dry ingredients: flour, salt, baking powder and baking soda.
Then in another large bowl, using an electric mixer, cream butter and sugar for about 5 minutes before incorporating eggs one at a time and then the vanilla extract.
To the creamed butter and sugar, add half of the flour mixture and mix before adding all of the Dairy Dairy mix and then the remaining half of flour. Mix until just combined.
Divide batter into 12 cupcakes and bake in a preheated oven for 15 to 20 minutes or until a toothpick inserted comes out clean.
Remove from oven and allow to fully cool before dipping each one into the jam and then shredded coconut.