Place a rack in the center of your oven. Preheat oven to 350 degrees Fahrenheit 20 minutes before baking your muffins. Line a 24-count mini muffin pan with liners and set aside.
Melt the butter, canola oil, and water over low heat in a medium saucepan.
Sift the dry ingredients (flour, sugar, cocoa powder, baking soda, and salt) into a large bowl. Slowly pour in the melted butter mixture and stir until all incorporated and smooth.
Add the egg and beat until incorporated. Add the buttermilk and vanilla and beat until smooth, scraping the bottom and side of the bowl.
Spoon the batter into the lined muffin tins, filling them about one-half full.
Bake the cupcakes for 15-18 minutes, or until a toothpick inserted into the middle comes out clean. Let the cupcakes cool slightly, then transfer them to a rack to cool completely.
Using a spatula, or a piping bag fitted with a piping tip, frost the cooled cupcakes with canned cream cheese frosting. Add sprinkles and serve!