Preheat oven to 350oF (180oC).Line a standard 12 cups muffin pan with cupcake liners. Set aside. To a bowl, add sugar and water. Whisk until sugar is completely dissolved.
Then, add, vanilla extract and oil. Mix well.
Sift in flour, baking powder, salt and cinnamon.
Mix until dry flour is no longer visible. DO NOT OVER MIX (mix until dry and wet ingredients are just combined).
Add carrot and mix until just combined.
Spoon batter into cupcake liner until 2/3 full.
Bake in preheated oven to 350oF (180oC), rack middle position, 20 minutes, or until toothpick inserted in the middle comes out clean.
Let cupcakes cool down in pan for 10 minutes. Then transfer cupcakes to wire rack to cool down completely.