Step 1

Preheat your oven to 350°F (175°C) and line a cupcake pan with paper liners.

Step 2

In a small saucepan, combine cranberries, 1/4 cup sugar, and water. Cook over medium heat until cranberries burst and the mixture thickens, about 8-10 minutes. Let the cranberry mixture cool.

Step 3

In a medium bowl, whisk together flour, baking powder, and salt.

Step 4

In a large bowl, beat butter and 1 cup sugar until light and fluffy. This helps create a soft texture for your cupcakes.

Step 5

Add eggs one at a time, beating well after each addition. Stir in the vanilla extract for an added layer of flavor.

Step 6

Gradually add the flour mixture, alternating with sour cream, beginning and ending with flour. Mix until just combined.

Step 7

Spoon the cupcake batter into the liners, filling each halfway. Add a spoonful of cranberry mixture on top, and use a toothpick to swirl gently for a festive effect.

Step 8

In a small bowl, beat cream cheese and powdered sugar until smooth. Pipe or spoon the cream cheese mixture on top of each cupcake.

Step 9

Bake for 20-25 minutes or until a toothpick inserted into the center comes out clean. Let the cupcakes cool completely.

Step 10

Garnish each cupcake with a fresh cranberry and a sprig of rosemary for a truly festive look!