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 with liners.

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

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

Add 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 everything is combined. Mix until smooth.

Divide the batter evenly between the 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 completely cool.

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

Add the melted butterscotch chips and combine.

Gradually add the powdered sugar and mix until combined.

Add the butter extract and vanilla, mixing until light and fluffy, about one more minute.

For the butterscotch ganache, combine butterscotch chips and heavy cream in a microwave-safe bowl. Microwave for 30-45 seconds, stirring to combine.

Mix in the honey. If it cools before using, microwave for 5-10 seconds to melt slightly.

Once cupcakes are cooled, pipe the butterscotch buttercream onto each cupcake. Drizzle with butterscotch ganache.