Here is what you need:
Any size terra cotta pot and water dish
I got the idea from a Christmas craft my daughter brought home from preschool~a candy cane jar (see... it really is a versatile craft). Hats off to her teachers who were brave enough to let a class of 10 three year olds get into paints!
And here, you have the cupcake pot!
If you are brave like the preschool teachers, you can have the little guests paint their own pots. This time, my sister and I went ahead and painted the mini-pots in the party colors for the girls and boys and glued the "cherries" on top. Note: in the candy cane pot above, painted wooden knobs were glued on top to serve as a knob to pull the top off. We just used pink and red fuzzy balls and they serve the purpose fine.
Initially, I was going to do bigger terra cotta pots and dishes but I'm glad I ended up choosing the mini ones b/c the fit in a cupcake stand (kinda~if you didn't breathe on them~ha!) and made a nice centerpiece before and after craft time...toppled over and all...wish I'd gotten a pic before the topple.