1. Preparing the Butterbeer Reduction
Begin by creating the signature butterbeer reduction. In a large pot, simmer 3 cups of butterscotch beer or cream soda over medium heat until it reduces to 1/2 cup. This process takes about 20–30 minutes and intensifies the butterbeer flavor. Allow the reduction to cool until it’s just slightly warm before incorporating it into the batter.

2. Prepping the Oven and Cupcake Liners
Preheat your oven to 350°F (175°C). Line two standard 12-cup muffin tins (or one 24-cup tin) with cupcake liners. Set these aside while you prepare the batter.

3. Mixing the Dry Ingredients
In a medium bowl, whisk together 1 3/4 cups of all-purpose flour, 1 1/2 teaspoons of baking powder, 1/4 teaspoon of baking soda, and 1/2 teaspoon of salt. This ensures that the leavening agents are evenly distributed for a consistent rise.

4. Creaming Butter and Sugars
In a large bowl, cream 1/2 cup of softened unsalted butter, 1/2 cup of packed light brown sugar, and 1/4 cup of granulated sugar until light and fluffy. This step incorporates air into the batter, resulting in tender cupcakes.

5. Incorporating Wet Ingredients
Add two eggs, 2 teaspoons of vanilla extract, and 1 teaspoon of butter extract to the creamed mixture. Beat until the mixture turns pale and smooth, which takes about 1–2 minutes. Stir in the butterbeer reduction and the melted butterscotch chips until well combined.

6. Combining Dry and Wet Mixtures
Gradually add the dry ingredients to the wet mixture, alternating with the buttermilk. Begin and end with the dry ingredients, mixing just until the batter is smooth and cohesive. Avoid overmixing, as this can make the cupcakes dense.

7. Baking the Cupcakes
Evenly divide the batter among the cupcake liners, filling each about two-thirds full. Bake for 14–18 minutes, or until a toothpick inserted into the center comes out clean. Allow the cupcakes to cool in the pan for five minutes before transferring them to a wire rack to cool completely.

8. Whipping Up the Butterscotch Buttercream
In a large bowl, whip 1 1/2 cups of softened butter with an electric mixer until pale and fluffy, about 5–10 minutes. Gradually add the melted butterscotch chips, ensuring they’re slightly warm but not hot. Incorporate the powdered sugar, one cup at a time, mixing well after each addition. Finish by blending in the butter and vanilla extracts. Continue beating until the frosting is light, creamy, and ready for piping.

9. Crafting the Butterscotch Ganache Drizzle
In a microwave-safe bowl, combine 1/4 cup of butterscotch chips and 1 tablespoon of heavy cream. Microwave for 30–45 seconds, then stir until the mixture is smooth. If needed, microwave for a few additional seconds. Stir in 1/2 tablespoon of honey for a glossy finish.

10. Assembling the Cupcakes
Transfer the buttercream to a piping bag fitted with a decorative tip and generously frost each cooled cupcake. Drizzle the butterscotch ganache over the frosting for a final touch of indulgence.