Preheat your oven to 350°F (175°C). Line a 12-cup muffin pan with cupcake liners.
In a mixing bowl, cream together the softened butter and granulated sugar using an electric mixer until light and fluffy.
Add the eggs one at a time, mixing well after each addition. Then mix in the vanilla extract.
In another bowl, combine the flour, baking powder, and salt. Gradually add the dry ingredients to the wet mixture, alternating with the milk. Mix until just combined.
Divide the batter evenly among the prepared cupcake liners, filling each about two-thirds full.
Bake in the preheated oven for 15-20 minutes or until a toothpick inserted into the center comes out clean. Allow cupcakes to cool completely.
For the frosting, beat together the softened butter and powdered sugar in a bowl. Add milk one tablespoon at a time until the desired consistency is reached for spreading or piping.
Once cupcakes are cool, spread or pipe frosting on top of each cupcake.
To create bunny faces, roll fondant into small shapes for ears and noses. Stick mini chocolate chips into the frosting for eyes and place the fondant decorations on top.
Optionally, sprinkle shredded coconut around the base of each cupcake to resemble grass.