Unsweetened Applesauce (Best Option)
1/2 cup per 1 cup butterUnsweetened applesauce works well as a butter substitute in cupcakes because it provides moisture and natural sugars that help tenderize the crumb. The pectin and water content mimic some of butter's moisture-retaining properties, which is crucial for keeping cupcakes soft.
To ensure success, reduce other liquids slightly to compensate for the added moisture from applesauce. Avoid sweetened varieties to prevent altering the cupcake's intended sweetness balance.
Compared to butter, applesauce produces a lighter, less rich cupcake with a slightly different mouthfeel, but it maintains a pleasant texture and moistness appropriate for cupcakes.