Preheat oven to 350°F (175°C) and line a cupcake pan with liners.
In a bowl, whisk together flour, baking powder, baking soda, and salt.
In another bowl, beat butter and sugar until light and fluffy. Add eggs one at a time, mixing well.
Mix in key lime juice, zest, and milk.
Gradually add dry ingredients to wet mixture and mix until just combined.
Fill cupcake liners about 2/3 full and bake for 18-20 minutes.
For buttercream, beat butter until creamy, then add powdered sugar, key lime juice, and zest. Add milk as needed for desired consistency.
Frost cooled cupcakes and serve chilled for a refreshing treat.