a small cake, the size of an individual portion, baked in a cup-shaped mold.
Older Slang.
a sexually attractive young woman.
a beloved girl or woman.

1820–30, Americanism; cup + cake Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2015.
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World English Dictionary
cupcake (ˈkʌpˌkeɪk)
a small cake baked in a cup-shaped foil or paper case

Collins English Dictionary - Complete & Unabridged 10th Edition
2009 © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins
Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009
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Word Origin & History

1828, Amer.Eng., from cup + cake, probably from the cups they are baked in, but possibly from the small measures of ingredients used to make them. Meaning "attractive young woman" is recorded from 1930s, Amer.Eng.
Online Etymology Dictionary, © 2010 Douglas Harper
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Example sentences
Or else someone needs to explain this fact to the cupcake-stealing bandits.
It takes grit to transform oneself from a hairy, alcoholic, cupcake-pajama-wearing hermit into eco-Barbie.
The good old days of funding school trips with cupcake revenues have apparently
  come to an end.
The fig and almond cake and cupcake recipe also calls for a fig jam.
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