Preheat oven to 350 degrees F (175 degrees C). Line 12 muffin cups with paper liners.

Whisk white sugar, oil, water, eggs, and 3 tablespoons pink lemonade powder together in a bowl; stir in buttermilk until smooth. Whisk flour, baking soda, and baking powder together in a separate bowl; beat into sugar mixture just until batter is combined. Add just enough food coloring to turn batter pink. Spoon batter into muffin cups.

Bake in the preheated oven until cupcakes spring back when lightly touched, 20 to 25 minutes.

Beat confectioners' sugar, butter, half-and-half, and 2 tablespoons pink lemonade powder together in a bowl using an electric mixer until frosting is smooth and creamy. Add enough food coloring to make a pink frosting; spread onto cupcakes.