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For the cupcakes:
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Preheat oven to 350u00b0F. Line three 12-count standard size cupcake pans with liners and set aside.
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In a measuring cup, combine milk and vanilla. Set aside.
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In the bowl of a stand mixer, beat butter at medium speed until creamy. Mix in sugar until fluffy.
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In a separate bowl, sift together flour and baking powder. Carefully add flour mixture into butter mixture alternately with the milk, beginning and ending with the flour.
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In a separate bowl using an electric mixer, beat egg whites at medium speed until stiff peaks form. Carefully fold egg whites into cupcake batter.
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Fill each cupcake liner about 2/3 full. Bake for 18 minutes or until a toothpick inserted in the center comes out clean. Remove pans from oven. Let cupcakes cool completely before frosting.
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For the frosting:
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In a large bowl using an electric mixer, beat butter and shortening on medium speed until creamed. Slowly beat in powdered sugar one cup at a time. Mix in salt and vanilla. Slowly mix in water (or milk) adding more or less until desired consistency is achieved.
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Divide batter into 4 bowls. Tint one with red gel, one with yellow gel, one with violet gel and one with blue gel. Add only a pea-sized amount to start and stir. Add additional drops at a time until you reach your desired shade.
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Fill 4 piping bags with the frosting. Using an 809 piping tip, top cupcakes with frosting. Garnish cupcakes with candies as desired.
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Cupcake recipe adapted from Southern Living.