Prepare the Oven and Pan: Preheat the oven to 350°F (177°C). Line a 12-count muffin pan with cupcake liners.
Combine the Dry Ingredients: In a large bowl, whisk together the all-purpose flour, baking powder, and salt. Set the mixture aside.
Cream the Butter and Sugar: Using a handheld or stand mixer fitted with a paddle or whisk attachment, beat the softened butter on high speed for about 1 minute, until smooth and creamy. Add the granulated sugar and continue beating on high for 2 minutes, until thoroughly creamed. Scrape down the sides and bottom of the bowl as needed. Add the Eggs and Vanilla: Reduce the mixer to low speed and add the eggs one at a time. Add the vanilla extract, then increase to medium-high speed and beat until everything is well combined. Scrape the bowl again as needed.
Combine the Batter: With the mixer running on low, gradually add the dry ingredients, alternating with the milk, until everything is incorporated. Increase the mixer to high speed and beat in the lime zest and fresh lime juice just until combined. Avoid overmixing. Fill the Liners: Spoon or pour the batter into the cupcake liners, filling each one only ½ to ⅔ full to prevent the batter from spilling over during baking.
Bake the Cupcakes: Bake for 18–20 minutes, or until a toothpick inserted into the center comes out clean. For approximately 30 mini cupcakes, bake for about 11–13 minutes at the same 350°F (177°C) temperature.
Brush with Tequila: While the cupcakes are still warm, optionally brush the tops with tequila. This adds extra tequila flavor to the cakes.
Cool Completely: Allow the cupcakes to cool completely before adding the frosting.
Beat the Butter: For the frosting, place the softened butter in a large bowl fitted with a whisk attachment. Beat on high speed for 2–3 minutes, until completely smooth and creamy.
Add the Confectioners’ Sugar: Add the confectioners’ sugar 1 cup at a time, beginning on low speed to prevent it from scattering, then increasing to high speed once incorporated. Repeat with each remaining cup until all the sugar has been added and the frosting is creamy. Flavor the Frosting: Add the tequila, vanilla extract, chosen lime flavoring, and a pinch of salt. Beat on high speed until thoroughly combined.
Adjust the Flavor: Taste the frosting and add additional salt or lime flavoring as needed.
Frost the Cupcakes: Once the cupcakes have cooled completely, pipe the frosting over the tops using a Wilton 1M tip or Wilton #12 round tip.
Garnish and Serve: Finish the frosted cupcakes with lime slices, lime zest, and/or coarse sugar as desired.