Love love love Sparkle Cupcakery in Surry Hills. They have incredible flavours and a gluten free option available every day. They also do pupcakes, which are cupcakes for your puppy dog. Doesn't get much cuter than that.
Cupcakes are a blessing in the dessert world! Of course there are many well-known places where you can purchase little pieces of heaven in the City CBD (e.g. The Cupcake Bakery, Cupcakes on Pitt, The Cupcakery), however it is rare to find them in the suburbs. Well look no further, I have discovered a gorgeous hidden wonder under the name of The Vanilla Cupcakery in Kingsgrove (http://www.vanillacupcakery.com.au) They have a fabulous range from Nutella cupcakes to white Tim Tam. The little shopfront is definitely worth a visit, they even do high tea too!
Ghermez, found in Bondi Junction, Alexandria, CBD and online (www.ghermez.com.au) do some really creative customisation work, and always spell out cute messages, create themed windows etc and the cupcakes taste great! Apart from that, The Cupcake Room, My Little Cupcake and Buttercream are all great and all should do delivery and special orders etc.