Bake cupcakes according to instructions on box and allow to cool.
Combine corn syrup, water and 1 cup sugar in a saucepan over medium-high heat. Bring to a boil then lower heat to medium low and heat to 240F (about 7 minutes)
While syrup is heating up whip together egg whites and 1/4 cup sugar on high until peaks form (about 7 minutes)
Slowly pour syrup into egg white mixture while still whipping at low speed.
Return speeds to high and whip until very stiff (4-5 minutes)
Divide coconut into 3 parts and pour in a ziplock bag.
Add one drop of food coloring into each bag (you'll have one blue bag, one green and one purple). Seal bags and shake to combine coconut with food coloring.
Using a spoon or ice cream scoop, scoop frosting on top of cupcakes. Dip frosting topped cupcakes in colored shredded coconut.