Preheat the oven to 375F. Line a cupcake pan with paper liners. Set the pan aside.
In a small pot, combine butter, vanilla, chocolate chip, and cocoa over low heat.
When the chocolate has melted, combine with flour, sugar, and baking powder. Mix well and add egg, mix well until egg is incorporated into the mixture.
Fill each baking cup 2/3 full with the batter. This will give the cupcakes enough room to expand.
Bake for 17-20 minutes. After 15 minutes, start inserting a toothpick into the cupcakes. Once it comes out clean, the cupcakes are done and should be taken out of the oven. Check back every 2 minutes until they’re ready.
Make the frosting. You can do this while the cupcakes are cooking. To make the frosting, just combine all the ingredients (use 2 cups of sugar in the beginning). Beat the mixture with a paddle until it’s smooth and gradually add the rest of sugar until it’s rich and creamy.
Cool the cupcakes for at least 3-5 minutes so they don’t melt the frosting.
Decorate the cupcakes with the frosting and cotton candy.