During the last decade, my compatriots and I (and a good portion of the city) began frequenting Magnolia Bakery, thanks to their crack-laden buttercream frosting cupcakes (and also, in part, due to being featured on Sex and the City). This began a somewhat ludicrous cupcake craze in the city and the rest of the country, with many a discussion on where the best cupcakes might be found in town. I never really took part too much - other than the aforementioned buttercream confection, there was never really a cupcake that I found I "craved." It's not my dessert item of choice. Give me a real piece of well-made cake/pie/mousse/souffle any day.
That said... OH MY F*CKING GOD, the cupcakes at Everything Frosted in Chinatown are AWESOME! It's a little second floor bakery, tucked away on a side-street between Mott and the Chinatown park on 105 1/2 Mosco Street.
In particular, the green tea cupcake with jasmine white chocolate frosting pictured above is SPECTACULAR! You pick a cupcake and a frosting and they customize it for you to order.
You go upstairs and it's an unassuming, clean, neat little light-green space with an open kitchen and a glass case with the cupcakes. On the other side of the room was a pastry chef taking photos of a completed Angry Birds cake!
And they give you a little stamp card that's a "Buy 5 - get 1 free" deal! (I may have immediately filled this card...)