Add the butterscotch beer or cream soda to a large pot. Simmer over medium heat until it reduces to 1/2 cup, about 20-30 minutes. Remove from heat and let cool until slightly warm.

Preheat oven to 350 degrees. Line 2 standard cupcake pans or one large 24-cup capacity pan with liners. Set aside.

In a medium bowl, whisk together the flour, baking powder, baking soda, and salt. Set aside.

In a large bowl, cream the butter, brown sugar, and granulated sugar with an electric mixer for 1-2 minutes until fluffy.

Add in the eggs, vanilla, and butter extract, mixing until pale in color, about 1-2 minutes.

Mix in the butterbeer reduction and melted butterscotch chips until combined.

Gradually add the dry ingredients and buttermilk until fully combined. Mix until the batter is smooth.

Divide the batter evenly among the 24 liners, filling each about 2/3 full.

Bake for 14-18 minutes, or until a toothpick comes out clean from the centers.

Let the cupcakes cool in the pans for 5 minutes, then transfer to a cooling rack to cool completely.

For the butterscotch buttercream, whip the softened butter in a large bowl until pale and fluffy, about 5-10 minutes.

Add the melted butterscotch chips and mix until combined.

Gradually add the powdered sugar, mixing until combined.

Finally, add the butter extract and vanilla, mixing until light and fluffy, about 1 more minute.

For the butterscotch ganache, combine the butterscotch chips and heavy cream in a microwave-safe bowl. Microwave for 30-45 seconds and stir until combined. Mix in the honey.

If the ganache gets too cold, microwave for 5-10 seconds to melt slightly.

Once the cupcakes are completely cooled, pipe the butterscotch buttercream onto each cupcake and drizzle with the butterscotch ganache.