Prepare cake batter and blend dry pudding mix into batter. Fold in pineapple. Spooning batter into prepared muffin cups. Bake as directed on package for 24 cupcakes. Cool.
Meanwhile, beat cream cheese and butter in large bowl with mixer until well blended. Gradually beat in sugar. Whisk in COOL WHIP. Spoon frosting into small freezer-weight resealable plastic bag; seal bag (or use a cake decorating bag with tip). Cut small corner off bottom of bag and insert tip.
Frost cupcakes with frosting. Sprinkle with toasted coconut.