Step 1Heat the oven to 350 degrees. Place paper liners in muffin tins.
Step 2Blend together three-fourths cup of the sugar and the nutmeg in a small bowl and set aside.
Step 3To make the batter, cream the butter, coconut powder and 1 cup of the remaining sugar in an electric mixer fitted with a flat paddle.
Step 4Mix together the coconut milk and almond extract. Alternate additions of the flour and the coconut milk to the butter mixture, beating until smooth.
Step 5In a separate bowl, whip 8 egg whites with one-half cup of the remaining sugar until they form soft peaks. Fold a third of the whipped egg whites into the batter. Add the remaining whipped egg whites and fold until thoroughly combined.
Step 6Fill the tins three-fourths full with batter. Sprinkle each cupcake with one teaspoon of the sugar-nutmeg mixture.
Step 7To make the topping, stir together the remaining 2 egg whites, the shredded coconut, and 2 1/2 tablespoons sugar in a small bowl. Evenly spread the topping on each cake.
Step 8Bake for 30 to 40 minutes, until a toothpick inserted in the middle of the cake comes out clean and the tops are golden. Cool the cupcakes and then remove them from the muffin tins.