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I'm adding my vote for Velvet Sky Bakery (in Jenkintown). I've been relying on them for at least a year now in my efforts to not show up at a dinner party empty handed. Without fail, their cupcakes are the hit of the get together. From the luscious Red Velvet with creamcheese frosting to any of the traditional chocolate or vanilla cupcakes layered with yummy-in-your-tummy buttercream frosting - these cupcakes have never disappointed. I've tried Naked Chocolate in the city and Magnolia in NYC - they don't even hold a candle to Velvet Sky Bakery!
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The ones at Flying Monkey in RTM are very good. If ever in Berwyn though, my favorite are at Clays Creative Corner Bakery (the ones with the flower are beautiful too!)
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Brown Betty Desserts in No Libs has great chocolate and red velvet ones. Also the cupcakes at Naked Chocolate Cafe in CC are great too.
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re: bluehensfan
I agree on the red velvet ones - my favorite, but I think the chocolate cupcakes are terrible - dry and dense. They also have great carrot cupcakes & pineapple.
The Amish stand next to the Dutch Eating Place at RTM has great black bottom cupcakes - chocolate cupcakes w/ a cream cheese & chocolate chip filling.
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