Toast the shredded coconut in a medium skillet over medium/high heat, transfer to a shallow dish, and let cool completely.
Level the cupcakes if necessary with a small paring knife.
Lightly frost each cupcake with a thin layer of chocolate frosting, if desired. Some of my cupcakes had some of the 'tres leches' still on top so I just covered that in toasted coconut and advanced to step 4.
Using a pastry bag fitted with a large round tip, pipe a ring or two of chocolate frosting around the top edge of each cupcake to form the border of the nest.
Sprinkle a large amount of toasted coconut over each cupcake, gently pressing it into the chocolate frosting. Shake off the excess.
Color some of the white frosting light blue. Using a pastry bag fitted with a wide round tip, pipe three mounds of frosting into the center of each nest to make the birds' bodies. If there is a little peak on the top of the mounds, wait a few minutes until the icing begins to set and then gently smooth it down with a toothpick or finger.
Color the remaining white frosting yellow, and fill a pastry bag fitted with a small "V" tip. Pipe a beak onto each bird.
Melt the chocolate in a microwave safe bowl, in 20 - 30 second intervals until completely melted. Dip a toothpick into the chocolate and then dot eyes onto each bird.