Place all dry ingredients in a large mixing bowl and stir together with a wire whisk.
Add the remaining ingredients and beat on medium speed for 2 minutes.
Pour into cupcake liners (or into greased and floured cake pans).
Bake in 325 degree preheated oven for 15-20 minutes.
Once cupcakes have cooled, cut out a hole in the centre of the cupcakes (not all the way to the bottom). Fill with strawberry preserves.
For the frosting: whip together the butter and cream cheese. Slowly incorporate the powdered sugar. Add vanilla. Whip for a few minutes until frosting gets light and fluffy. Swirl in blue or teal food colouring to desired look (I left a little white throughout to look like the surf of the ocean).
Slather cupcakes with frosting and lift knife or spatula as you are swirling it on to make it appear like waves. Top with fondant shark fins (made out of rolled icing) and enjoy!