In a bowl, add butter and sugar. Beat it using a hand mixer until creamy.
Add milk and vinegar and beat for 2minutes. The mixture may seem curdled but after 2-3minutes of beating, it will become soft and fluffy. Add vanilla and mix well.
In another bowl, mix flour, baking soda, baking powder and salt.
Add this flour mixture to the butter mixture and fold with a wooden spoon or rubber spatula.
Add carrots and raisins and fold.
Preheat oven to 180C.
Line the muffin tray with cupcake liners.
Fill the liners with the batter.
Bake for 30minutes or until a tooth pick inserted comes out clean.
Cool the cupcakes on wire rack.
Serve.