Step 1

Preheat oven to 200C or 180C fan-forced. Grease a 12 x 1/3-cup capacity muffin pan. Alternatively, line holes with paper cases. Combine flour and caster sugar in a bowl. Make a well in the centre.

Step 2

Add milk, butter, eggs and vanilla to flour mixture. Using a large metal spoon, stir gently to combine.

Step 3

Spoon mixture into prepared muffin pan. Bake for 12 to 15 minutes, or until a skewer inserted into the centre comes out clean. Stand in pan for 5 minutes before transferring to a wire rack to cool.

Step 4

Make icing: Sift icing sugar into a bowl. Add food colouring and water. Stir until smooth and well combined. Spoon icing over cupcakes. Decorate with sprinkles.