Preheat your oven to 350 degrees Fahrenheit. Line a standard 12-cup muffin tin with festive paper liners to ensure the cupcakes do not stick and are easy to serve.
In a medium bowl, whisk together the flour, ground ginger, cinnamon, cloves, nutmeg, baking powder, baking soda, and salt. Make sure the spices are evenly distributed so every bite has that signature Christmas warmth.
In a large mixing bowl, beat the softened butter and brown sugar together until the mixture is light and fluffy. This usually takes about two to three minutes with an electric mixer.
Add the egg and alcohol-free vanilla extract to the butter mixture, beating well. Stir in the molasses until the batter is a rich brown color. Be sure to scrape down the sides of the bowl so everything is fully incorporated.
Gradually add the dry flour mixture to the wet ingredients, alternating with the hot water. Start and end with the flour mixture, mixing on low speed until just combined. Be careful not to overmix, as this can make the cupcakes dense.
Divide the batter evenly among the prepared muffin cups, filling each about two-thirds full. Bake for 18 to 20 minutes, or until a toothpick inserted into the center comes out clean. Transfer the cupcakes to a wire rack to cool completely before frosting.
While the cakes cool, beat the cream cheese and butter together until smooth. Gradually add the powdered sugar and a drop of alcohol-free vanilla, whipping until fluffy. Pipe the frosting onto the cooled cupcakes and decorate with a sprinkle of cinnamon or a small gingerbread man.
