Preheat oven to 350ºF.  Grease 26 to 28 cup cake tray (2-1/2 inch) or line with paper liners. 

Combine water and cocoa powder in a small saucepan over medium-low heat.  Stir until smooth and bring to a boil.  Remove from heat and stir in chocolate chips until melted.  Set aside to cool. 

Whisk together flour, sugar, baking powder and salt in a large mixer bowl.  Add buttermilk, oil, eggs and vanilla, mix for 1 to 2 minutes on medium speed or until smooth.  Add cooked melted chocolate mixture and continue mixing for 1 minute or until well blended. 

Portion batter evenly into baking cups, filling each approximately two-thirds full.  Bake for 18 to 20 minutes or until a wooden pick inserted in the center comes out clean.  Remove from oven.  Remove cupcakes from pans and allow to cool completely on wire racks before frosting. 

For frosting: Beat butter, corn syrup, vanilla and salt in a large mixing bowl until light and creamy.  Gradually add powdered sugar and 1/3 cup milk until fluffy, adding additional milk as needed to reach desired spreading consistency, add drops of blue food colouring.  Pipe frosting generously onto cupcakes with a pastry bag and decorative tip.  Using sugar sheet cut into 1 inch strip. To create the collar simply fold in the left and right corners to overlap. To make the tie, cut out a tie shape from the pink and yellow sugar sheets and decorate with dots using writing icing.