In a large bowl or the bowl of a standing mixer, combine the cream cheese and butter. Cream until smooth. Add the confectioners sugar, and whip until fluffy. Add the vanilla and whisk until combined.
Put the coconut in a zip top bag. In a small bowl, combine 2 teaspoons of water and 6 drops of green food coloring (add more if you want a deeper color). Pour the liquid evenly over the coconut, close the top, and shake the bag to distribute the coloring.
Frost the tops of each cupcake and sprinkle with the coconut. Top each cupcake with a mini chocolate bunny. Enjoy!