Preheat the oven to 375 F or 180 C and prepare your muffin trays for 14 regular sized cupcakes- line with paper liners.
In a small bowl, combine the water and cocoa, mixing until smooth.
In a medium sized bowl, whisk together the flour, baking powder, salt, cayenne, and cinnamon and set aside.
In another bowl, cream together the butter and sugar until light and fluffy.
Add the eggs, one at a time and the vanilla extract.
Gradually whisk in the flour mixture until just combined.
Gently stir in the cocoa mixture. Careful not to over mix the batter as this will work the gluten and you’ll end up with a tougher cupcake.
Spoon the batter into the paper liners around 3/4 of the way full. Use an ice cream scoop if you have one.
Bake for 16-18 minutes or until a toothpick comes out clean. Make sure you don’t over bake as this will result in a drier cupcake.
Cool completely before frosting.
For the frosting, whisk the cocoa into the melted butter.
Add in the cayenne pepper.
Gradually add in the powdered sugar alternating with the milk.
Add the vanilla and continue beating for 2-3 minutes or until light and fluffy.
Spread the mixture over the cupcakes (or pipe) and garnish with the chili flakes.