Last I added some crushed candy canes I bought last year from Surfas (my favorite spot for baking supplies). I had planned to add peppermint extract to the frosting but it appears I'm actually out (or I can't find it - it could go either way). The liners also have a candy cane print (they're also from Surfas) that you can sort of see in the picture above. Printed liners work better with lighter color cupcakes.
Voila! Simple, easy, delicious, and adorable. My favorite kind of cupcake.