Sweet Cream Funfetti Cupcakes
If you’re looking for a cupcake that’s anything but ordinary, these Sweet Cream Funfetti Cupcakes are about to become your new favorite. They’re soft, rich, and packed with nostalgic birthday cake flavor, but with a secret ingredient that completely transforms both the cake and the frosting. I can guarantee this is unlike any funfetti cupcake recipe you’ve tried!

The secret: sweetened condensed milk. It’s folded into both the cupcake batter and the frosting, creating a dessert that’s richer, creamier, and more flavorful than a traditional vanilla cupcake. The result is a cupcake that’s incredibly moist with a soft, dense crumb that stays fresh for days. They’re substantial without feeling heavy, with flavor that’s the perfect cross between sweet vanilla ice cream and a classic birthday cake.
Why You’ll Love This Recipe
- Sweetened condensed milk creates an ultra-moist cupcake that stays fresh for days.
- Rich vanilla flavor without tasting overly sweet.
- Dense, bakery-style crumb that’s soft and tender.
- Rainbow sprinkles stay suspended throughout the batter instead of sinking.
- The cupcake liners peel away cleanly without half sprinkles sticking to the paper.
- Silky vanilla frosting that turns deliciously fudgy after chilling.
- Easy to make with simple pantry ingredients.



What Makes Sweetened Condensed Milk So Special?
Sweetened condensed milk does much more than add sweetness.
Because it’s concentrated milk with much of the water removed, it adds richness without thinning the batter or frosting. The natural milk sugars help lock in moisture, which is why these cupcakes stay soft long after they’re baked. It also contributes a subtle caramelized dairy flavor that makes the vanilla taste even richer.
In the frosting, sweetened condensed milk creates an incredibly smooth texture that’s impossible to get with powdered sugar alone. The result is a frosting that’s creamy, silky, and almost melt-in-your-mouth.
Choosing the Right Vanilla
Since these cupcakes are all about vanilla flavor, my choice is a very specific but very delicious vanilla extract. These cupcakes are baked with Watkins classic taste vanilla flavor. Combined with the sweetened condensed milk, it creates a funfetti cupcake that tastes like sweet vanilla ice cream.
However, this will not make or break the cupcakes. Use what you’ve got! But for the best experience, I highly recommend trying it with the classic taste vanilla.

Sprinkles Matter
Not all sprinkles bake the same.
Use rainbow jimmies for the best results. They’re less likely to bleed into the batter and hold their shape while baking, leaving colorful specks throughout every cupcake.
Avoid nonpareils, as they tend to dissolve into the batter and can leave streaks of color.
Tips for Perfect Cupcakes
- Don’t overmix the batter. Once the flour is added, mix only until no dry streaks remain. Overmixing develops gluten, which can make cupcakes tough and sink in the center.
- Measure your flour correctly. If you scoop directly from the bag, it’s easy to pack too much flour into the measuring cup, resulting in dry cupcakes. For the most accurate results, weigh your flour with a kitchen scale.
- Fill the liners evenly. About 3/4 full gives the cupcakes enough room to rise into beautiful domes without overflowing.
- Cool completely before frosting. Even slightly warm cupcakes will melt the frosting.
- Slowly mix in the sweetened condensed milk. If it’s added all at once, the frosting will fully split and because hard to work with.
- Chill before serving. While they’re delicious at room temperature, these cupcakes become something truly special after an hour or two in the refrigerator. The frosting firms into a silky, fudge-like consistency while the cake stays perfectly soft.

Funfetti Cupcakes FAQs:
Absolutely, just swap the flour with a cup for cup gluten-free baking flour. I like Bob’s Red Mill (the blue bag) or King Arthur measure for measure. Then, preheat the oven once the batter is mixed. Allow the batter to rest while the oven preheats, then bake as directed.
This is the secret sauce to this funfetti cupcake recipe, so don’t skip it!
Use my funfetti sheet cake recipe instead! Or my funfetti layer cake.
Absolutely. In fact, they’re even better the next day. Store the frosted cupcakes in the refrigerator, then serve chilled or let them sit at room temperature for 15 to 20 minutes before serving.
This can happen if the sweetened condensed milk is added too fast. It can break the emulsion. This can also happen if the butter is too warm from the start. To fix this, place the frosting in the refrigerator for about 30 minutes and try to mix it again.
Rainbow jimmies are highly recommended, but seasonal jimmies work just as well for holidays and celebrations.
Yes. Freeze the unfrosted cupcakes for up to three months. Thaw overnight in the refrigerator before frosting.

For more delicious cupcake recipes, check out my:
- Perfect Vanilla Cupcakes
- Moist Chocolate Cupcakes
- Carrot Cake Cupcakes
- Guinness Chocolate Cupcakes
- Roasted Strawberry Cupcakes
- Lemon Cupcakes
- Brown Butter Vanilla Cupcakes
Make sure to tag me @butternutbakery on Instagram or leave a comment below if you make these Funfetti Cupcakes. I love seeing my recipes come to life in YOUR kitchen! To pin this recipe and save it for later, you can use the button on the recipe card, the buttons above or below this post, or on any of the photos above. Happy baking!
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Sweet Cream Funfetti Cupcakes
- Total Time: 1 hour 55 minutes
- Yield: 12 cupcakes
Description
These Funfetti Cupcakes prove that a few simple ingredients can completely elevate a classic dessert. Sweetened condensed milk gives both the cake and frosting an unbelievably creamy texture, the vanilla flavor shines through in every bite, and those colorful sprinkles make them feel festive no matter the occasion.
Ingredients
Funfetti Cupcakes
- 1/2 cup (112g) unsalted butter, room temp
- 2 tbsp vegetable oil (or any mild oil)
- 1/2 cup (100g) granulated sugar
- 14 oz can sweetened condensed milk, divided
- 2 tsp Watkins classic taste vanilla flavor *see notes
- 2 large eggs
- 1/2 cup (120g) sour cream
- 1 tbsp cornstarch
- 1 tsp baking powder
- 1/2 tsp kosher salt
- 1 1/4 cups (162g) all-purpose flour or 1-to-1 gluten-free baking flour, spooned and leveled
- 1/3 cup (60g) rainbow jimmies sprinkles, plus more for decoration
Sweet Cream Frosting
- 1 cup (220g) unsalted butter, room temp
- Small pinch of kosher salt
- 2 cups (220g) powdered sugar, spooned and leveled
- 1 tsp Watkins classic taste vanilla flavor
Instructions
Funfetti Cupcakes
- Preheat the oven to 350F and line a cupcake tin with 12 paper liners. Then add 2 more liners to a loaf pan or any small baking pan (these two extra cupcakes will be used for decoration).
- In a large bowl using a hand or stand mixer with the paddle attachment, mix together the butter, oil, and sugar until creamy and fluffy, about 1 minute. Then mix in 1/2 cup (150g) of the sweetened condensed milk (set the rest off to the side for the frosting) and vanilla flavor until fluid and well blended.
- Then mix in the eggs, followed by the sour cream. Now add in the cornstarch, baking powder, and salt and mix until blended. Then mix in the flour just until you reach a smooth and creamy batter. Careful not to overmix. Use a spatula to fold in the sprinkles by hand.
- Divide the batter evenly between the 14 liners, filling each about ¾ full. Bake for 22 to 25 minutes or until evenly puffed and a toothpick inserted comes out clean with a few moist crumbs. It’s ok if the two extra cupcakes spilled out of the liners. We’ll be crumbling them up anyway!
- Allow the cupcakes to cool in the pan for about 5 minutes, then transfer to a cooling rack to cool completely before making the frosting. In the meantime, finely crumble the extra 2 cupcakes onto a plate and toss with a couple extra tablespoons of sprinkles.
Sweet Cream Frosting
- In a large bowl using a hand or stand mixer with the paddle attachment, mix the butter and salt on medium high speed until smooth and creamy, about 1 minute. Then mix in the powdered sugar one cup at a time on medium speed. Scrape down the bowl between each cup. Then mix in the vanilla.
- Once the frosting is smooth, slowly mix in the remaining sweetened condensed milk, adding it in three additions. Wait until each addition is fully incorporated before adding the next. Stir in the final addition by hand.
- Add the frosting to a piping bag and top each cupcake with a swirl. Use your hand to scoop and press the cupcake crumbles around the sides. Now they’re ready to enjoy!
- To store, keep the cupcakes in a container in the refrigerator. They also taste really good chilled, and the frosting turns into a delicious fudgy consistency!
Notes
VANILLA – This gives these cupcakes a unique, vanilla ice cream-like flavor. However you can use whatever vanilla extract you like!
- Prep Time: 30 minutes
- Cooling Time: 1 hour
- Cook Time: 25 minutes
- Category: Dessert
- Method: Baking
- Cuisine: American
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Meet Jenna
I’m the creator, baker, and photographer behind Butternut Bakery. Here I share desserts for every diet because I believe everyone should have a chance to indulge!




