This recipe turns your favorite holiday drink into a handheld celebration. I first made these cupcakes during a blustery December when I wanted something to bring to a cookie exchange but didn’t want another cookie on the table. The result was a revelation: the cake is tender and softly spiced with nutmeg, while the frosting sings true eggnog flavor without being cloying. They slice through the nostalgia of the season and deliver a familiar, warming profile everyone recognizes.

I discovered the balance between eggnog and structure after a few batches. Too much liquid makes a dense crumb; too little and the eggnog note disappears. The trick is a light creaming of butter and sugar combined with a measured addition of eggnog so the crumb stays airy but still soaked in flavor. Each bite gives you the soft cake base, a sweet pillowy frosting, and a gentle dusting of nutmeg on top — it always prompts a second helping at our holiday table.

Ingredients

• All-purpose flour: 1 1/4 cups. Opt for a well-sifted, unbleached flour for the lightest crumb. Spoon into the measuring cup and level off rather than scooping to avoid a dense result.
• Baking powder, nutmeg, salt: 1 1/2 teaspoons baking powder, 3/4 teaspoon ground nutmeg, 1/4 teaspoon salt. Freshly ground nutmeg gives a brighter, warmer spice note than pre-ground — a small change that elevates the final flavor.
• Butter: 6 tablespoons unsalted butter at room temperature. Properly softened butter creams with sugar to trap air; it should yield slightly when pressed without being greasy.
• Sugar & oil: 3/4 cup granulated sugar and 1 1/2 tablespoons vegetable oil. The sugar aerates while a touch of oil helps keep the cake moist the next day.
• Vanilla and eggs: 1 teaspoon vanilla extract and 2 large eggs. Add eggs one at a time to maintain a stable emulsion and ensure volume.
• Eggnog: 1/2 cup plus 2 tablespoons. Use a good-quality refrigerated eggnog (non-alcoholic is fine) for authentic flavor. If you prefer, use spiced or homemade eggnog for more complexity.
• For the buttercream: 1/2 cup (1 stick) unsalted butter, 1/2 cup shortening, 4 cups powdered sugar, 4 tablespoons eggnog, 1/4 teaspoon rum extract (optional), 1 teaspoon nutmeg, pinch of salt. Shortening stabilizes the frosting so it holds up during display and transport.

Instructions

Prepare the pans and dry mix:Preheat the oven to 350°F and line a 12-cup muffin pan with liners. In a bowl, whisk together the flour, baking powder, ground nutmeg and salt until evenly combined. Sifting is optional but helps avoid lumps and results in a lighter batter.Cream butter and sugar:In a large mixer bowl, beat the room-temperature butter, granulated sugar and vegetable oil on medium-high until pale and fluffy, about 3 minutes. This step incorporates air which gives the cupcakes lift. Scrape the bowl to keep mixing even.Add eggs and flavor:Add the eggs one at a time, mixing until mostly incorporated after each addition. Add the vanilla with the second egg. The batter will look glossy and slightly thick; if it breaks, a quick scrape and low-speed mix brings it back to uniformity.Combine dry and wet:Add half the dry ingredients to the batter and mix on low until just combined. Slowly pour in the eggnog while mixing to maintain an emulsion; this prevents curdling and keeps the batter airy. Add the remaining dry ingredients and mix until smooth but do not overmix — stop as soon as streaks disappear to avoid developing gluten.Portion and bake:Fill each cupcake liner a little over half full (about 2/3 full). Bake for 15–18 minutes or until a toothpick inserted into the center comes out clean and the tops spring back when lightly pressed. Rotate the pan halfway through if your oven has hotspots.Cool completely:Transfer cupcakes to a cooling rack and let cool completely before frosting. Frosting warm cupcakes will cause the buttercream to melt and lose shape.Make the buttercream:Beat the butter and shortening on medium until combined. Add 2 cups of powdered sugar and mix until smooth. Add 2 tablespoons eggnog, rum extract (if using), nutmeg and salt, then incorporate the remaining powdered sugar. Add the remaining eggnog a tablespoon at a time until the buttercream reaches piping consistency. Chill briefly if too soft before piping.Frost and finish:Pipe or spread buttercream onto cooled cupcakes and dust lightly with nutmeg. Keep cupcakes refrigerated in an airtight container if not serving immediately.

Storage Tips

Store unfrosted cupcakes in an airtight container at room temperature for up to 24 hours, then refrigerate for up to 4 days. Frosted cupcakes should be kept chilled in a single layer to protect the decoration; use a container with at least 1 inch of clearance above the highest frosting peak. For long-term storage, freeze cooled frosted cupcakes on a baking sheet for about an hour, then individually wrap in plastic wrap and place in a freezer-safe container for up to 3 months. When ready to serve, unwrap and thaw in the fridge first to avoid water pooling on the frosting, then bring to room temperature for 30–60 minutes before serving to restore flavor and softness.

Ingredient Substitutions

If you need to adapt the base, use plant-based milk combined with a tablespoon of cornstarch and a splash of vanilla to mimic eggnog for a dairy-free version; the texture will be slightly different but still flavorful. To reduce sugar, cut the powdered sugar in the frosting by up to 1/2 cup and add a teaspoon of cornstarch for structure, though sweetness will be less pronounced. For a boozier adult version, replace 1–2 tablespoons of eggnog in the frosting with dark rum or spiced rum — reduce other liquids slightly to maintain consistency.

Serving Suggestions

Present these on a tiered dessert stand with a light dusting of freshly grated nutmeg or a cinnamon stick garnish for each cupcake. They pair wonderfully with a small cup of black coffee or mulled cider to balance the sweetness. For a party, create a small dessert bar with chocolate-dipped cranberries, gingerbread cookies and a platter of these cupcakes for a festive ensemble. Mini candy canes or a sprinkle of crushed ginger cookie makes for a playful holiday touch without overpowering the eggnog flavor.

Seasonal Adaptations

In winter, boost the warm spices — add 1/4 teaspoon cinnamon and a pinch of cloves to the batter for a spiced holiday profile. For spring or summer, lighten the frosting by folding in 2 tablespoons of whipped cream (stabilized with a little confectioners’ sugar) and garnish with a citrus zest to brighten the cup. During parties, offer both boozy and non-boozy trays by adding a small dab of rum-infused buttercream on half the batch and plain eggnog buttercream on the rest.

Meal Prep Tips

To prepare in advance, bake the cupcakes one day ahead and cool completely. Make the buttercream the morning you plan to serve and chill it briefly if it becomes too soft. For transport, use a cupcake carrier to protect the frosting; if you must stack cupcakes, freeze them slightly first so the frosting sets. When assembling gift boxes, include an ice pack if traveling a long distance, or deliver within a few hours to avoid melting in warm cars.

Success Stories

Readers have told me they used this recipe for everything from office parties to neighbor gifts. One friend reported that her picky teenager, who usually avoids anything labeled 'seasonal,' declared these his favorite cupcake ever. Another reader adapted them with bourbon for an adults-only New Year’s event and received requests for the recipe. Little anecdotes like these make the recipe a holiday staple in my circle.

These cupcakes are a gentle reminder that tradition can be playful and that small technical tweaks — proper creaming, measured liquid, and a touch of shortening in the frosting — yield reliably joyful results. Make them your own, and enjoy the smiles they bring.