Preheat your oven to 400 degrees F. Line a cupcake pan with paper liners.
In a small bowl, whisk together 1/2 cup plus 2 tablespoons all-purpose flour, 1/2 teaspoon baking powder, 1/4 teaspoon baking soda, 1/8 teaspoon salt, 1 teaspoon ground cinnamon, and 1/2 teaspoon ground nutmeg.
In a large mixing bowl, add in the 1/3 cup vegetable oil, 1/2 cup granulated sugar, 2 large eggs, and 1/2 teaspoon vanilla extract. Beat with a hand mixer on medium until combined.
Once your wet ingredients are incorporated, slowly add 1/3 of the dry ingredients. Beat until the dry ingredients are worked in. Repeat with the last to thirds of the dry ingredients.
Once the ingredients are well-combined, fold in the 3/4 cup shredded carrots.
Scoop the batter into your muffin pan and fill ¾ full.
Bake for about 20 minutes or until a toothpick comes out clean when inserted in the center of the cupcake. Allow to cool completely.
Frosting
In a mixing bowl, add in the 4 ounces cream cheese and 1/2 cup butter. Mix until light and fluffy.
Add in the 2 1/2 cups powdered sugar and 3 tablespoons heavy cream. Mix until incorporated. Turn the mixer on high and beat for another 2 minutes until the frosting is fluffy.
Add the frosting into a piping bag with a 1A tip and pipe swirls on the cooled cupcakes.
Toppers
Divide your 4 ounces orange fondant into 10 1-inch balls.
Roll out each ball into a 2-inch long shape and ½ an inch thick. It should resemble a baby carrot.
Flatten the top of your fondant carrot where the leaves will go. Work the other end with your fingers to give to taper it off and give it a sort of point.
Use a toothpick to score some lines on the fondant carrot. This will give it some realistic texture. Place a fondant carrot on top of each frosted cupcake.
Color about 1/4 cup of the leftover frosting with leaf green gel food color. Place in a piping bag fitted with a small round piping tip. Add 3 green leaves to the top of each carrot.
Store in an airtight container in the fridge.
Notes
Storage: Store in an airtight container at room temperature for 1 to 2 days or in the refrigerator for up to 5 days.