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Preheat oven to 350°F (176°C) and prepare a cupcake pan with cupcake liners.
Combine the flour, baking powder , cinnamon, nutmeg and salt in a medium sized bowl and set aside.
Add the butter, oil and sugars to a large mixer bowl and beat together until light in color and fluffy, about 3-4 minutes. Do not skimp on the creaming time.
Add the vanilla extract and sour cream and mix until well combined.
Add the eggs one at a time, mixing until mostly combined after each. Scrape down the sides of the bowl as needed to be sure all ingredients are well incorporated.
Add half of the dry ingredients to the batter and mix until combined.
Slowly add the milk and mix until well combined. The batter might look a little curdled, but that’s ok.
Add the remaining dry ingredients and mix just until well combined and smooth. Scrape down the sides of the bowl as needed to be sure all ingredients are well incorporated. Do not over mix the batter.
Gently fold in the chopped apples.
Fill the cupcake liners about 3/4 full and bake for 15-18 minutes or until a toothpick inserted into the center comes out clean.
Remove cupcakes from the oven and place on a cooling rack to cool.
To make the caramel buttercream, add the butter to a large mixer bowl and beat until smooth.
Carefully add about half of the powdered sugar and mix until smooth and well combined.
Add about 4 tablespoons of the caramel sauce to the frosting and mix until well combined.
Add the remaining powdered sugar and mix until smooth. Add additional caramel sauce as needed to get the right consistency and taste.
Pipe the frosting onto the cupcakes. Decorate with a drizzle of caramel sauce and apple slice
Cupcakes are best when stored well covered in the fridge for 2-3 days. Serve at room temperature.