Preheat oven to 350°F. Grease muffin pans or line with paper baking cups.
Prepare cupcakes according to package directions. Spoon batter into lined muffin cups.
In a small bowl, combine cream cheese, sugar and egg; mix until smooth. Stir in chips and coconut. Spoon about 1 tablespoon cream cheese mixture onto batter of each cupcake.
Bake 25 minutes or until toothpick inserted in center comes out clean. Cool cupcakes following package directions.
Spread cupcakes with frosting. Garnish with toasted coconut and mini-chocolate chips if desired.