Cupcakes are the rage in NYC
According to this New York Times story (registration required):
Fashion and cupcakes also collide at Joe, a new coffeehouse on Waverly Place, where the cupcakes are baked by Amy Sedaris, an actress who has appeared on "Sex and the City." (Sarah Jessica Parker persuaded the owner to carry them.)
Ms. Sedaris brings both craftsmanship and irony to her cupcakes, combing flea markets and eBay for vintage pokes, tiny decorative figurines she sticks on top. During the Jewish High Holy Days, Sedaris cupcakes were topped with tiny Israeli flags, and pink plastic ballerinas are a standby.