Preheat oven to 350°F. Line a 12-count cupcake tin with paper liners. Set aside.
In a large bowl, whisk the applesauce, peanut butter, honey, eggs, and oil together until smooth.
⅔ cup unsweetened applesauce, ½ cup creamy peanut butter, ⅓ cup honey, 2 large eggs, ¼ cup coconut oil
Add the water and mix again.
¾ cup water
In a separate bowl, whisk the flour and baking powder together.
1½ cups whole wheat flour, 2½ teaspoons baking powder
Add the wet ingredients to the dry and mix until combined.
Spoon into the cupcake tin and bake for 20-24 minutes or until a toothpick inserted into the center of a muffin comes out clean (or with a few crumbs but no batter).
Cool completely on a wire rack.
While the cupcakes are cooling, prepare the frosting. Add the cream cheese and peanut butter to a bowl. Use an electric hand mixer to beat until smooth.
8 ounces cream cheese, ½ cup creamy peanut butter
Once the cupcakes are cool, use a wilton 1M tip, or simply cut the end of the piping bag (or ziplock), to pipe the frosting onto the cupcakes.
Top each cupcake with a milk bone.
12 small milk bones