Preheat your oven to 350°.
In a large bowl, beat the butter and sugar for a minute. Add the eggs, sour cream and water and mix until combined. Add the remaining cake ingredients and beat for 1-2 minutes until smooth and only a few lumps are visible.
In lined cupcake pans, fill each cup ¾ full. Bake at 350° for 25-30 minutes until a toothpick inserted in the center of the cupcake comes out clean. Set aside and allow to cool completely.
Meanwhile, in a large bowl, beat the butter and shortening for 3-4 minutes until smooth and lightened a bit in color.
Add the cream, vanilla, peppermint and ⅓ of the powdered sugar and beat for 2-3 minutes. Add half of the remaining powdered sugar and beat for an additional 2-3 minutes. Add the remainder of the powdered sugar and beat the buttercream until it is light and fluffy.
Remove half of the buttercream from the mixing bowl and place in another bowl. Fill a piping bag half full of the buttercream
Add red dye to the remaining frosting in the mixing bowl and beat until the color is completely blended. Fill a piping bag half full of red buttercream.
Place both half full piping bags into one pipping bag with a large round tip. (https://www.youtube.com/watch?v=JuzXzcTlpv0)
Pipe or spread the buttercream on the cooled cupcakes and top with crushed candy canes and a mint. Store in an airtight container.