Preheat oven to 350 degrees Fahrenheit and line a 12-cup muffin tin with paper liners.
In a large bowl, whisk together flour, sugar, baking powder, and salt.
Add 0.5 cup softened butter and mix on low speed until the texture resembles coarse sand.
In a separate container, whisk the egg, milk, and vanilla extract.
Add the liquid mixture to the dry ingredients and beat on medium speed for 2 minutes until smooth.
Divide the batter evenly among the 12 liners, filling each approximately two-thirds full.
Bake for 18 to 20 minutes, or until a toothpick inserted into the center comes out clean.
Transfer cupcakes to a wire rack and allow to cool completely.
To make the frosting, cream 1 cup butter until light and fluffy; gradually add powdered sugar, cocoa powder, vanilla, and heavy cream, beating until smooth.
Place frosting into a piping bag fitted with a grass tip or small star tip.
Pipe the frosting in a circular motion around the edges of the cupcake to create a nest appearance.
Place three malted milk chocolate egg candies into the center of each frosting nest.