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Heat Merlot in a small sauce pan until it barely simmers. Remove from the heat and add cherries. Soak cherries for 1 hour. Drain and reserve 1/3 cup of the Merlot.
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Preheat oven to 350 degrees F. Line a 12-cup muffin pan with paper liners.
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Whisk together flour, baking powder, baking soda, and salt in a bowl.
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In a separate large bowl, cream butter and sugar using an electric hand mixer on high speed until light and fluffy.
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Add eggs and vanilla and beat to combine.
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Combine milk and reserved Merlot in a measuring cup.
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Add the flour mixture in three additions, alternatively with the milk in two additions, mixing on low speed until just combined. Do not over mix.
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Stir in drops of red food coloring until desired color is reached.
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Stir in cherries.
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Divide batter among muffin cups.
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Bake for 20 to 25 minutes or until a cake tester or toothpick inserted into the center comes out clean. (Tops of cupcakes should spring back when lightly touched)
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Remove cupcakes from the pan and cool completely on a wire rack. Frost with sweet white frosting.