Preheat the oven to 350°F. Line a cupcake pan with paper liners. In a large mixing bowl, cream together butter and sugar until light and fluffy. Add eggs one at a time, mixing well after each addition. Gradually add flour and baking powder, alternating with milk. Stir in vanilla extract.

Spoon the batter into the prepared cupcake liners, filling each about two-thirds full. Bake for 18-20 minutes or until a toothpick inserted into the center comes out clean. Let them cool in the pan for a few minutes before transferring to a wire rack to cool completely.

In a medium bowl, beat the softened butter until creamy. Gradually add powdered sugar, milk, and vanilla extract, beating until smooth. If desired, separate into different bowls to add food coloring.

Once the cupcakes are cool, pipe the frosting onto each cupcake. Decorate with edible glitter, sugar crystals, and small edible figures to create a winter scene.

Gently place a clear gelatin dome over each decorated cupcake, ensuring it fits snugly over the frosting and decorations.

Arrange the cupcakes on a serving platter and present them as a centerpiece for your holiday table. Pair them with hot chocolate or spiced cider for a delightful treat.

Store the cupcakes in an airtight container in the refrigerator for up to 3 days. Allow them to come to room temperature before serving to enjoy the best texture.