Prepare the Cupcakes:
Preheat your oven to 350°F (175°C) and line a muffin tin with cupcake liners. Prepare the cake mix according to the box instructions (or use your favorite homemade recipe). Pour the batter into the cupcake liners, filling them about 2/3 of the way full.

Bake:
Bake the cupcakes for 18-20 minutes, or until a toothpick inserted into the center comes out clean. Remove from the oven and allow them to cool completely on a wire rack.

Make the Frosting:
While the cupcakes cool, make the frosting. In a large mixing bowl, beat the softened butter until creamy. Gradually add the powdered sugar, one cup at a time, and mix until smooth. Add the vanilla extract, a pinch of salt, and 2 tablespoons of milk. If the frosting is too thick, add more milk, a little at a time, until it reaches a spreadable consistency.

Frost the Cupcakes:
Once the cupcakes are cool, spread a generous amount of frosting on top of each cupcake using a butter knife or spatula. Smooth it out evenly.

Make the Gnome Hats and Faces:
Roll out a small piece of red fondant and shape it into a cone to create the gnome hat. Place it on top of the frosted cupcake. For the gnome’s face, roll out a small piece of skin-tone fondant into a circle and flatten it slightly. Place it on the cupcake, just below the hat.

Add the Nose:
Roll a small ball of white fondant, then lightly press a mini chocolate chip into it to make the gnome’s nose. Attach it to the face of the gnome.

Add Facial Features:
Use an edible marker to draw small eyes, a smile, or other facial details on the fondant face to complete the gnome’s expression. You can also use more fondant for eyes and eyebrows.

Finishing Touches:
If desired, sprinkle some edible glitter on the hats or the entire cupcake for a magical, sparkly effect.

Serve and Enjoy:
Your adorable Gnome Cupcakes are now ready to enjoy! Serve them at your next party or as a fun treat for a special occasion.