Preheat oven to 350˚F. Line 12 muffin tins with cupcake liners or lightly grease.
In the bowl of a stand mixer fitted with a paddle attachment or a large bowl with a hand mixer, beat together the butter and granulated sugar. Beat in the eggs one at a time, followed by the orange zest and vanilla extract.
In a medium bowl, combine the flour, baking powder, baking soda, and salt.
In another bowl, whisk together the chardonnay and sour cream.
Mix 1/3rd of the flour mixture into the butter until just incorporated, followed by half of the chardonnay sour cream, 1/3rd of the flour, the remaining chardonnay sour cream, and the remaining flour.
Transfer the mixture to the prepared muffin tins, filling the 2/3 full (I used an ice cream scoop). Bake in preheated oven just until cooked through and a toothpick inserted in the center comes out clean, about 22 minutes. Allow to cool on wire racks.
In the bowl of a stand mixer fitted with a whisk or a large bowl with a hand mixer, beat together the softened butter and powdered sugar. Mix in the vanilla extract, orange zest, and salt.
Slowly add the blood orange juice, just enough to create a smooth and creamy buttercream frosting.
Transfer to a piping bag fitted with desired tip and pipe onto cooled, room temperature cupcakes. If desired, top with slices of blood orange for garnish.