Here is how you do a simple version of a cupcake!
You use the casing from the Super Large Cupcake punch and punch out a 2" circle and a small 1.5 cm circle for a cherry or chocolate drop.
I then added some faux stitching for a little bit of detail using a Sakura 'Micron' pen and a highlight on chocolate drop using a Woodware white pen.
Here are some variations.
You can have some fun using up scraps of patterned paper. Polka dot paper works really well.
For another alternative you can also use a 2" scalloped circle.