Preheat the oven to 350°F (175°C) and line a muffin tin with cupcake liners.
Cream together the softened butter and granulated sugar in a mixing bowl until light and fluffy.
Add in the eggs, buttermilk, key lime juice, and vanilla extract, mixing until well combined.
Whisk together the flour, baking powder, baking soda, and salt in another bowl.
Gradually add the dry ingredients to the wet ingredients, mixing until just combined.
Divide the batter evenly among the prepared cupcake liners, filling each about two-thirds full.
Bake for 18-20 minutes or until a toothpick inserted in the center comes out clean.
Allow the cupcakes to cool completely before frosting them.
Beat the softened butter in a mixing bowl until creamy.
Gradually add the powdered sugar, mixing on low speed until combined.
Add the heavy cream, vanilla extract, and key lime juice, then beat on high speed until fluffy.
Frost the cooled cupcakes with the buttercream frosting using a spatula or piping bag.
Sprinkle the key lime zest on top of each frosted cupcake for garnish.