Beat Cream cheese and Butter together for several minutes. Mix in Confectioner's sugar and Vanilla. Beat until smooth and creamy. Covered and put in the fridge.
Pumpkin cupcakes:
Preheat the oven 350°F (176°C).
In a large bowl, beat Sugar, Oil, Pumpkin and Eggs until well blended. Combine Flour, Baking soda, Salt, Baking powder and Cinnamon in a small bowl. Gradually beat into pumpkin mixture until well blended.
Line cupcake pan with paper liners. Fill each line three quarters full. Bake 18-20 minutes or until a toothpick inserted in the center comes out clean. Cool 10 minutes before removing to wire racks.
Cut a 1-inch by 1 inch (2.5cm by 2.5cm) circle in the center using a small, sharp knife. Set aside cake pieces.
Bring the frosting out, fill the hole with frosting and add a little frosting on top. Place a candy pumpkin on top of the frosting. Repeat the same for the rest of the cupcakes.
Notes
Adjust the icing stiffness accordingly. Add additional 1 tablespoon of heavy cream if the icing consistency is too stiff or 1/2 cup of confectioners' sugar if the icing is too thin.