Prep the pan and oven: Line a 12-cup muffin tin with liners. Preheat the oven to 350°F (175°C).
Make sure eggs, milk, and sour cream are at room temperature for best mixing.
Whisk dry ingredients: In a medium bowl, whisk flour, baking powder, baking soda, and salt. Set aside.
Cream butter and sugar: In a large bowl, beat softened butter and sugar on medium speed for 2–3 minutes until light and fluffy. Add oil and beat 30 seconds more until smooth.
Add eggs and vanilla: Beat in eggs one at a time, scraping the bowl after each.
Mix in vanilla until combined.
Combine wet and dry: On low speed, add half the dry mixture, then all the milk and sour cream, then the remaining dry mixture. Mix just until combined. Do not overmix—a few small lumps are okay.
Color the batter: Divide batter evenly into 3–4 small bowls. Add gel coloring one drop at a time using a toothpick until you reach soft pastel shades.
Stir gently to avoid deflating the batter.
Fill the liners: For a swirled look, spoon small dollops of different colors into each liner and lightly swirl with a toothpick. For layered colors, add a small scoop of one color, then another on top. Fill liners about two-thirds full.
Bake: Bake 16–19 minutes, or until the tops spring back and a toothpick comes out clean or with a few moist crumbs. Do not overbake—that’s what dries them out.
Cool completely: Let cupcakes cool in the pan for 5 minutes, then transfer to a wire rack.
Cool fully before frosting.
Make the frosting: Beat butter on medium-high for 2 minutes until creamy. Gradually add powdered sugar, 1 cup at a time, beating on low until combined, then on medium until fluffy. Add vanilla, salt, and 2 tbsp cream.
Beat 1–2 minutes more. Adjust with more sugar to thicken or more cream to loosen.
Color the frosting (optional): Divide frosting and tint with small amounts of gel color for soft pastels. For a multi-color swirl, add stripes of different colors inside the piping bag, then fill with frosting.
Decorate: Pipe generous swirls or spread with a spatula.
Top with pastel sprinkles or edible pearls if you like.