Preheat the oven to 180 degrees/gas mark 4. Cream together the butter and sugar in a mixing bowl. Add the eggs and the flour gradually, folding as you go.
Add 2 tbsp caramel and stir into the cupcake mixture.
Prepare 12 cupcake cases in a tin. Gradually add the mixture until you have filled the cases three quarters of the way up (depending on how big you like your cupcake). Place these in the oven for 15-20 minutes, or until golden brown.
Remove the cupcakes from the tin to cool on a wire rack, and prepare your buttercream.
Make icing using the icing sugar and butter, then add in a tbsp or two of caramel (depending on how you like it!). Mix this together until you are happy with the consistency.
Once the cakes are cool, using a sharp knife, carve a small cone into the top of the cake and remove this carefully. In the cone-shaped indentation, place a tsp of caramel, then replace the cone, making it as neat as possible.
Use a piping bag, decorate your cakes with a neat swirl and top with mini fudge pieces.