In a large bowl, combine the dry ingredients. Combine the water, oil, vinegar and vanilla; stir into dry ingredients just until moistened.
Fill greased or paper-lined muffin cups two-thirds full. Bake at 350° for 15-18 minutes or until a toothpick comes out clean. Cool for 5 minutes before removing from pans to wire racks.
In a bowl, cream the shortening, butter and confectioners' sugar. Stir in water and extracts. Remove 1/2 cup frosting to a small bowl; tint with black food coloring. Frost cupcakes with remaining white frosting.
Cut a small hole in the corner of a pastry or plastic bag. Insert a small round #5 tip; fill bag with black frosting. Decorate cupcakes with black frosting and candies as desired.