Preheat oven to 350°F / 175°C, and place 12 cupcake liners in a muffin pan.
Use your fingertips to massage 1 cup of granulated sugar with the zest of 1 lime in a large bowl. This helps release the oil from the lime zest. The mixture should become aromatic.
Add 1/4 cup of room-temperature butter. Mix on a medium-high speed with a hand mixer for a minute to cream together the butter and sugar.
Add 1/2 cup sour cream, 1/2 cup water, 1 large egg, 1 tsp vanilla extract, and a small squirt of yellow and green gel food coloring (optional) into the butter/sugar mixture. Mix on a medium speed until combined. Scrape the sides of the bowl as needed.
Sift 1 1/4 cups all-purpose flour, 1 1/2 tsp baking powder, and 1/2 tsp salt into the wet ingredients.
Mix the batter together until the ingredients are just combined and you can’t see any streaks of flour.
Divide the batter evenly between the cupcake liners, filling them about 2/3 full. Bake for 18-21 minutes or until a toothpick comes out clean.
Let the cupcakes cool for 5 minutes before moving them onto a cooling rack to finish cooling.
Lime Curd Cupcake Filling:
Make the lime curd next! It needs time to cool to room temperature.
Fill a saucepan with 2 inches of water and heat over medium-low heat.
Combine 2 large egg yolks, 1/3 cup sugar, 3 Tbsp of lime juice, 2 tsp lime zest, and 1/4 tsp of fine salt in a medium-sized, heat-proof bowl. Whisk until combined and smooth.
Once the water begins to simmer, place the bowl on top of the saucepan to make a double boiler. Leave the heat on medium-low heat and make sure the water isn't touching the bottom of the bowl. Continuously whisk the mixture until it thickens. This usually takes me about 3-5 minutes.
Remove the bowl from the pan and turn off the stove. Add 2 Tbsp of butter and whisk until incorporated. The mixture should be thick and smooth at this point.
Scoop the lime curd into a small piping bag and seal the top. Place in the fridge to cool. It should thicken and be chilled in 15-30 minutes.
Leftover lime curd can be stored in the fridge for up to 2 weeks.
Lime Buttercream:
While the cupcakes bake and cool, make the lime buttercream.
Beat 1 cup of unsalted butter on a medium speed for 30 seconds with a hand mixer until smooth.
Add in the zest of 1 small lime, 1 tsp vanilla extract, and 1/4 tsp salt. Mix on a low speed until the ingredients are incorporated.
Mix in 3 1/2 cups of powdered sugar and 1 Tbsp of fresh lime juice on a low speed. Scrape the sides and bottom of the bowl as needed.
Once fully mixed, if the frosting seems too thick, add additional lime juice (1 tsp at a time). If the frosting is too thin, add more powdered sugar (a quarter of a cup at a time). Or if your frosting looks broken before adding it into the piping bag, add in more room-temperature butter, 1 Tbsp at a time until it comes back together.
Stir the frosting by hand with a rubber spatula once it's made for a minute or two to make the frosting super smooth.
Cut off the tip of the bag and fit it with an open star piping tip (like a Wilton 1M).
Place the buttercream in the piping bag and seal the top with a rubber band.
Decorating these Lime Cupcakes:
Once the cupcakes have fully cooled, remove the centers with a small sharp knife or a 3/4-inch circle cutter.
Fill the center of each cupcake with lime curd.
Pipe a generous swirl of lime buttercream frosting on top of each cupcake, and garnish with a lime slice and a dusting of lime zest.
Video
Notes
One batch of this recipe makes 12 standard-sized cupcakes. It can also be used to make about 30 mini cupcakes (bake for 8-10 minutes at 350 F/175 C).This recipe can also be doubled or halved if needed.
Variations:
To make eggless, dairy-free lime cupcakes, use dairy-free yogurt (almond, oat, or soy) in place of the sour cream and vegan butter in place of the unsalted butter (and omit the salt in this recipe).
To make gluten-free lime cupcakes, swap in your favorite gluten-free flour blend for the AP flour this recipe calls for, and be sure to over-mix your batter and let it sit for at least 30 minutes before baking for the best results.
Making these Lime Cupcakes in Advance & Storage Tips:
Make your cupcakes in advance! If stored unfrosted and unfilled in an airtight container, they can last for a few hours at room temp, up to 5 days in the fridge, or up to 3 months in the freezer.You can also make your frosting ahead of time or save any leftover frosting! It can be stored in an airtight container in the fridge for up to a month, or in the freezer for up to 3 months. Be sure to give it a good stir once it thaws to get the consistency nice and smooth again.Frosted cupcakes can sit out at room temperature overnight in an airtight container, but I find frosting and filling them right before serving is best.