How to Make Guest Towel Cupcakes
According to Jonathan Fong, author of “Parties That Wow” and creator of this DIY, “Given as a set, they make adorable hostess, housewarming and birthday gifts.” For a final adorable touch, you can package the set in a pastry box (which you can find at a party store or culinary supply store such as Surfas). Trust us, it’ll “take the cake” as far as gifts go.
What you’ll need (per cupcake):
Guest towel
Rubber band
Cupcake wrapper
Small lollipop
1. Roll the towel into a long strip
Place the towel at an angle in front of you with the four corners facing north, south, east and west, like a diamond. Starting at the bottom, roll up the towel so you have a strip that is about 2 inches wide. Helpful tip: The thinner the towel the easier it is to work with, so avoid the super-plush variety.
2. Roll the strip into a bun
Once you have the towel rolled into a long strip, start at one end and roll the towel into the shape of a cinnamon bun, or Princess Leia’s iconic hairstyle from “Star Wars.” It won’t look like a cupcake yet, but it will very soon.
3. Hold with a rubber band
Wrap a rubber band tightly around the bottom of the rolled-up towel to hold its shape, and push up on the center so that it is a little higher than the sides. This domed shape now resembles that of a cupcake, with the folds of the towel looking like frosting.
4. Place in a cupcake wrapper
Position the towel in a cupcake wrapper, hiding the rubber band within the wrapper. You can purchase cupcake wrappers at crafts stores, culinary supply stores and supermarkets. They are made from either paper or silicone. The silicone ones are smaller, but they stretch.
5. Top with a lollipop
For the “cherry” on top of the cupcake, insert a lollipop in the middle of the rolled-up towel. And that it’s — you’re done.
6. Voila! A set of delicious cupcakes.
Don’t blame us if you accidentally start nibbling on them 
Source: https://diyprojects.com/make-guest-towel-cupcakes/