This is what I use:
Hot boiled water
Cupcakes (firm cupcakes works best)
Optional: Flavourings and food colors.
Brush the cupcakes with a thin coat of hot abricot jam. Let it dry.
Place the fondant in a heatproff bowl and heat it gently in the microway oven for approx 1 min. It needs to be warm but dont let it boil. Give it a stir to get it smooth. It is important that you get the right consistency. If it gets too thick you will have difficulty to dip the cupcake properly and if it is too thin it will look transparent on the cupcake. Give it a few tries and you will find the right consistency. You can use boiled water, a tsp at a time, to thin it down. If it gets too cold gently reheat it in the microway oven a few sec.
Now take the cupcake and dip it upside down in the hot fondant. Carefully shake the excess fondant off. I like to dip my cupcakes so the fondant sticks to the paper cases.
Set the cupcakes aside and let them dry. If you like you can give them a second coat when the first one is dry.
Attach your choosen decoration on the cupcakes with dots of royal icing.
Note: Store the cupcakes in cake boxes. NOT in the refrigerator because that will dissolve the poured fondant. Also air thight containers can make the fondant melting.
Please visit my tutorial section if you want to learn other cupcake decoration techniques.
You can also see my tutorial where you learn how to make poured fondant icing.