Preheat oven to 350°F (177°C). Make sure your oven rack is in the top 1/3 of the oven.
In a medium bowl, combine 1/2 cup flour, 1/3 cup strawberry powder, 1/2 teaspoon baking powder, and 1/8 teaspoon salt. Set aside.
In a large bowl, whisk the egg and 1/4 cup sugar for about 30 seconds. Add the 2 teaspoons vanilla extract and 4 Tablespoons melted butter and whisk until well combined.
Add half the dry ingredients to the bowl of wet ingredients and whisk until just combined. Add 1/4 cup of milk, and whisk until just combined. Add the remaining dry ingredients and whisk until combined. Be careful not to overmix!
Bake for 14-18 mins, until a toothpick inserted into the center of the cupcakes comes out clean or with just a couple dry crumbs.
Transfer to a cooling rack and cool completely before frosting.
To make the frosting, put 4 Tablespoons of softened butter, 1 cup of powdered sugar, 1/2 teaspoon vanilla extract, 3 Tablespoons heavy cream, and 1/3 cup powdered freeze dried strawberries into a food processor and mix until frosting forms.
To decorate the cupcakes, spread frosting on top of cupcakes with a knife OR pipe the frosting onto the cupcakes using a pastry bag and nozzle.