Line two 12-hole muffin pans (1/3-cup capacity) with large paper cases.
Beat butter and sugar in a large bowl of an electric mixer until light and fluffy.
Beat in eggs, one at a time, until combined. Add milk and sifted flour, in two batches, stirring until combined
Divide mixture evenly among prepared pan holes.
Cook both pans in a moderate oven (180C) for about 15 to 18 minutes, or until a skewer inserted into the centres come out clean. Stand in pans for 10 minutes. Transfer to wire racks to cool.
Spread e icing evenly over cupcakes. Stand for 5 minutes, or until set. Cut licorice strap into 6cm lengths for smiles on cupcakes. Decorate with jelly beans for eyes.
To make icing, combine sugar and milk in a large bowl. Stir until smooth. Tint each bowl witha different colouring.