For best results, I recommend reading the blog post for the original Butter-Free Buttercream recipe on the blog.
Make the frosting while the cupcakes are baking - In a small saucepan, add the coconut milk solids, solid coconut oil, and 1 tablespoon of powdered sugar. Heat over medium-low heat and stir the mix with a spatula until it has completely melted together – this should only take about 1 minute. Do not boil. The mixture will resemble a creamy soup.
Transfer the mix to a small mixing bowl and stir in the vanilla extract. Let cool to room temperature – about 10 minutes. You still want the mix to be be liquid when you add the powdered sugar. Note – You can also refrigerate it for a few minutes to speed up the cool down.
Add the remaining 2 cups of powdered sugar in 1/2 cup increments at a time. Using a handheld mixer fitted with the whisk attachments, add a 1/2 cup of the powered sugar to the coconut mixture. Start at low speed to incorporate the powdered sugar and avoid having it spray everywhere. Turn up the speed to high and beat for 1 minute. At this point, the frosting will look sticky and gooey.
Continue to add a 1/2 cup of powdered sugar at a time – beating for at least 1 minute after each addition. With the final 1/2 cup, add the peach powder and beat the frosting for an additional 2 – 3 minutes, until it is light and creamy. The frosting should be thick and creamy and resemble the store-bought frosting you buy in the small tubs at the grocery. If the frosting still looks loose, refrigerate it for about 10 minutes, then beat for a couple more minutes until it thickens.
The frosting is ready to use right away or can be refrigerated. If refrigerating, the frosting will firm even more. Allow refrigerated frosting to come to room temperature and stir/mix to fluff before frosting.
Assemble the cupcakes - Once the cupcakes are completely cool, assemble the cupcakes. Spoon the caramelized on top of each cupcake. I recommend piping the frosting on the cupcakes next - piping won't cause the caramelized peaches to fall off when frosting. Serve and Enjoy!