Preheat oven to 180°C. Line 20 muffin tins with cupcake papers.
Cream the butter and sugar with an electric mixer until light and fluffy in a large bowl.
Add the eggs one at a time, beating well after each addition. Add vanilla and mix. Combine flour, baking soda and baking powder in a separate bowl, set aside.
In another bowl, whisk together the champagne and sour cream.
Add flour and champagne mixture alternately, beginning and ending with flour.
Fill cupcake liners about ¾ full with mixture and bake for 15-17 minutes until lightly golden brown.
Allow to cool in the tin for 15 minutes, then turn out onto a wire rack.