In a large bowl, mix cake mix, oil, eggs and water until cake batter is creamy.

Gently fold patriotic candy sprinkles into the cake batter. If you mix them in too much the colors will blend.

Add batter to cupcake liners and bake at 350 degrees for 12-15 minutes. Once done, let cool.

Make the homemade frosting by mixing powdered sugar, butter, vanilla and milk into bowl. Mix until smooth and fluffy. Add extra milk to get desired thickness.

If desired, add red or blue food coloring. Frost the cupcakes.

Top cupcakes with additional candy sprinkles, small American Flags and other patriotic decorations of your choice.

For an extra fun 4th of July party display, fill a plastic wine glass 3/4 full of patriotic candy and place cupcakes on top of candy.