In a large bowl whisk together 1 ¾ cups all-purpose flour, 1 teaspoon baking soda, ½ teaspoon baking powder, and 1/8 teaspoon salt.
In a separate large mixing bowl beat ½ cup softened unsalted butter and 1 cup granulated sugar until light and fluffy, about 2 minutes.
Add 1 large egg and 2 teaspoons vanilla extract to the butter-sugar mixture and mix until combined.
Add the dry ingredients to the wet ingredients all at once and mix just until combined (about 5 seconds with a mixer or until no dry streaks remain). Do not overmix.
Fold in ½ cup funfetti until evenly distributed and the flour is incorporated.
Cover and chill the dough in the refrigerator for at least 2 hours, preferably overnight.
When ready to bake, preheat the oven to 375°F (190°C). Spray a mini muffin pan with baking spray.
Use a small cookie scoop to portion the chilled dough directly into the mini muffin cups.
Bake the cookie cups for 8–10 minutes (about 9 minutes is typical). Remove from the oven and let the pan sit for 5 minutes.
Transfer the cookie cups to a wire rack and cool completely before frosting.
While the cookies cool, make the frosting: in a large bowl beat the remaining ½ cup softened unsalted butter until creamy.
Add 3 to 3.5 cups powdered sugar, one cup at a time, mixing well after each addition (sift the powdered sugar over the butter if desired).
Add 1 teaspoon vanilla extract and 1 Tablespoon heavy whipping cream. Beat the frosting for about 2 minutes until smooth and spreadable.
Fill a piping bag with the frosting and pipe/decorate the cooled cookie cups.