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A cupcake (the common US, Canadian, and Australian term) or fairy cake (the common British term), is a small cake designed to serve one person, frequently baked in a small, thin paper cup. As with larger cakes, frosting and other cake decorations, such as sprinkles, are common on cupcakes.
In the early 19th century, there were two different uses for the name "cup cake" or "cupcake". In previous centuries, before muffin tins were widely available, the cakes were often baked in individual pottery cups, ramekins, or molds and took their name from the cups they were baked in. This is the use of the name that has persisted, and the name of "cupcake" is now given to any small cake that is about the size of a teacup. The name "fairy cake" is a fanciful description of its size, which would be appropriate for a party of diminutive fairies to share.
The other kind of "cup cake" referred to a cake whose ingredients were measured by volume, using a standard-sized cup, instead of being weighed. Recipes whose ingredients were measured using a standard-sized cup could also be baked in cups; however, they were more commonly baked in tins as layers or loaves. In later years, when the use of volume measurements was firmly established in home kitchens, these recipes became known as 1234 cakes or quarter cakes, so called because they are made up of four ingredients in equal ratios; butter, sugar, eggs and flour. They are plain yellow cakes, somewhat less rich and less expensive than pound cake, due to the reduced proportion of butter. The names of these two major classes of cakes were intended to signal the method to the baker; "cup cake" uses a volume measurement, and "pound cake" uses a weight measurement.