Begin by preheating the oven to 350°F/175°C. Place 12 cupcake liners in a muffin tin and set aside.
Add 1 1/4 cups all-purpose flour, 1 cup sugar, 1 1/2 tsp baking powder, and 1/2 tsp salt to a large bowl. Whisk together until combined and set aside.
In a separate, large bowl, add 1/2 cup warm water, 1/2 cup sour cream, 1/4 cup vegetable oil, 1 egg, 1 tsp of vanilla extract, and 1/2 tsp of almond extract. Whisk together until combined.
Add the dry ingredients to the wet ingredients and mix until just combined. The batter should be thin, but that's the way it's supposed to be! Gently fold in 1/4 cup of rainbow sprinkles.
Divide the cupcake batter evenly between the muffin liners, filling them about 3/4 of the way full. Bake for 20-22 minutes, or until a toothpick comes out with a few moist crumbs.
Let the cupcakes cool for 10 minutes, then move them to a wire rack to finish cooling. If you want to accelerate the cooling process, pop the cupcake pan into your freezer for about 30 minutes.