Reduce Butterbeer: Pour butterscotch beer into a saucepan and simmer over medium heat for 20-30 minutes until it thickens and measures about ½ cup. Let cool slightly.

Preheat Oven: Set your oven to 350°F (175°C) and line cupcake pans with paper liners.

Mix Dry Ingredients: Whisk together flour, baking powder, baking soda, and salt in a mixing bowl.

Creaming: Beat softened butter, light brown sugar, and granulated sugar together until fluffy, about 1-2 minutes.

Incorporate Eggs and Extracts: Add eggs one at a time, mixing well. Then add vanilla and butter extract until smooth.

Combine Wet: Stir in butterbeer reduction and melted butterscotch chips until fully incorporated.

Combine Dry and Wet: Gradually add dry ingredients to wet mixture, alternating with buttermilk, mixing until just combined.

Bake: Fill cupcake liners about two-thirds full and bake for 14-18 minutes or until a toothpick comes out clean.

Cool: Allow cupcakes to cool in the pans for 5 minutes, then transfer to a wire cooling rack to cool completely.

Make Frosting: Whip softened butter until fluffy, then gradually mix in powdered sugar and melted butterscotch chips until creamy.

Prepare Ganache: Combine butterscotch chips and heavy cream in a bowl and heat until smooth, adding honey if desired.

Decorate: Pipe buttercream on cooled cupcakes and drizzle with ganache for a magical finish.