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Heat oven to 350u00b0F degrees.
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Grease 12-cup muffin pan or line with baking cups.
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Place 1 cup of the pecans and 1/4 cup of the sugar in food processor.
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Pulse until finely ground and fluffy, being careful not to make paste.
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In large bowl, beat remaining 3/4 cup sugar and 1/2 cup butter at medium speed 5 to 6 minutes or until light and fluffy.
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Add eggs one at a time, beating well after each addition.
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Beat in 1 teaspoon vanilla.
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In medium bowl, stir together flour, baking powder, baking soda, salt and 1 cup ground pecans.
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At low speed, beat sour cream into sugar mixture alternately with flour mixture.
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Spoon into muffin cups, filling two-thirds full.
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Bake 25 to 30 minutes or until golden brown and toothpick inserted in center comes out clean.
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Cool on wire rack 10 minutes.
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Remove from pan; cool completely.
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To make frosting, in large bowl beat egg yolks at medium-high speed 5 minutes or until light, fuffy and pale colored.
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Meanwhile, in small saucepan, combine 6 tablespoons sugar and 1 tablespoon of the water.
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Cook over medium-high heat, without stirring, 4 to 6 minutes or until sugar turns golden amber color.
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Remove from heat; carefully add remaining 3 tablespoons water.
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Return to heat; cook, stirring, until sugar is dissolved.
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Slowly add sugar mixture to beaten egg yolks, beating at medium-high speed 5 minutes or until mixture has cooled.
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Add 1/2 cup butter a few pieces at a time; add 1/2 teaspoon vanilla.
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Beat until smooth.
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Spread each cupcake with thick layer of frosting.
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Very finely chop remaining 1/4 cup pecans; roll edges of cupcakes in nuts.
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TIP: To toast pecans, spread on baking sheet; bake at 375u00b0F.
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for 7 to 10 minutes or until light golden brown.