Preheat oven to 350°F (175°C). Line a 12-cup muffin tin with cupcake liners.
In a large bowl, whisk together the flour, granulated sugar, baking powder, baking soda, and salt.
In a separate bowl, cream together the softened butter until light and fluffy.
Beat in the eggs one at a time, then stir in the vanilla extract.
In a small bowl, whisk together the milk and sour cream.
Alternately add the dry ingredients and the milk mixture to the butter mixture, beginning and ending with the dry ingredients. Mix until just combined.
Gently fold in the rainbow sprinkles.
Divide the batter evenly among the cupcake liners, filling each about two-thirds full.
Bake for 20-22 minutes, or until a wooden skewer inserted into the center comes out clean.
Let the cupcakes cool in the muffin tin for a few minutes before transferring them to a wire rack to cool completely.
While the cupcakes are cooling, prepare the frosting. In a large bowl, beat the softened butter until creamy.
Gradually add the powdered sugar, alternating with the milk, and mix until smooth and fluffy. Stir in the vanilla extract.
Once the cupcakes are completely cool, frost them with the vanilla buttercream and sprinkle with extra rainbow sprinkles.
Notes
These cupcakes are best enjoyed fresh, but can be stored in an airtight container at room temperature for up to 2 days.