Preheat oven to 350 degrees F (175 degrees C). Line 24 cupcake cups with paper liners.
Beat cake mix, water, vegetable oil, and eggs in a mixing bowl using an electric mixer, on low speed until mixture is moistened, 30 seconds. Increase speed to medium and beat until batter is smooth, 2 more minutes. Fill prepared cupcake cups about 2/3 full with batter.
Bake cupcakes in the preheated oven until a toothpick inserted into a cupcake comes out clean, 18 to 23 minutes. Remove cupcakes from oven and turn oven heat up to 400 degrees F (205 degrees C). Let cupcakes cool.
Spread coconut into a large, shallow baking pan or onto a baking sheet; toast in the hot oven until coconut is golden brown, about 7 minutes. Cool.
Cut a piece out of the top of each cupcake to leave a hollow depression about 1/2 inch deep and 1 1/2 inches across. Discard cut-out portions. Frost cupcakes with chocolate frosting and cover frosting with toasted coconut. Place 3 egg-shaped candies in the small depression on top of each cupcake.
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