Preheat oven to 350℉ (175℃). Line a 12-cup muffin tin with paper cupcake liners.
In a large mixing bowl, use a hand mixer to beat 1/2 cup salted butter (softened) and 3/4 cup granulated sugar on medium speed until light and fluffy, about 2 to 3 minutes. Beat in 1 teaspoon vanilla extract until combined.
Add 2 large eggs, 3/4 cup buttermilk, 2 teaspoons baking powder, and 1/4 teaspoon salt. Mix on a low speed until smooth. Gradually add 1 3/4 cups all-purpose flour, mixing on low speed just until combined. Do not overmix.
Using a rubber spatula, gently fold in 1/2 cup sprinkles. Stir just until evenly distributed to avoid color bleeding.
Divide batter evenly among cupcake liners, filling each about halfway full. Bake for 15 to 18 minutes, or until a toothpick inserted into the center of a cupcake comes out clean.
Remove cupcakes from muffin tin and cool completely on a wire rack before frosting.
To make frosting, beat softened butter with vanilla extract and 2 cups powdered sugar until light and fluffy. Slowly add in remainder of powdered sugar and use milk to thin as needed. Transfer to a piping bag to frost. Decorate with additional sprinkles.
FROSTING
In a medium mixing bowl, beat 1 cup salted butter (softened) and 1½ teaspoon vanilla extract until smooth and creamy.
Gradually add 3 cups powdered sugar. Add 1 tablespoon milk, as needed, to reach desired consistency.
Transfer frosting to a piping bag and frost cooled cupcakes. Top with 1/4 cup sprinkles for decoration.