In this paper, we generalize the Poincar\'e-Lyapunov method for systems with linear type centers to study nilpotent centers in switching polynomial systems and use it to investigate the bi-center problem of planar $Z_2$-equivariant cubic switching systems associated with two symmetric nilpotent singular points. With a properly designed perturbation, 6 explicit bi-center conditions for such polynomial systems are derived. Then, based on the $6$ center conditions, by using Bogdanov-Takens bifurcation theory with general perturbations, we prove that there exist at least $20$ small-amplitude limit cycles around the nilpotent bi-center for a class of $Z_2$-equivariant cubic switching systems. This is a new lower bound of cyclicity for such cubic polynomial systems, increased from $12$ to $20$.
