Preheat the oven and prepare a cupcake pan with liners.

In a mixing bowl, combine flour, sugar, butter, eggs, milk, vanilla extract, baking powder, and salt. Mix until smooth.

Fill the cupcake liners about two-thirds full with the batter.

Bake in the preheated oven for 15 minutes or until a toothpick comes out clean.

Allow cupcakes to cool completely.

For the frosting, beat the butter until creamy, then gradually add powdered sugar and milk, mixing until smooth.

Stir in vanilla extract and optionally add food coloring to the frosting.

Frost cooled cupcakes and decorate with graduation caps and diplomas.