Heat the oven to 350 degrees. Line 24 medium muffin cups with paper liners. Stir together the flour, baking powder, baking soda and salt; set aside. In a food processor bowl, process 2/3 cup cottage cheese, water, 2 teaspoons lemon zest and lemon juice.
Pulse for 15 to 20 seconds or until blended; set aside. In the bowl of a stand mixer, beat the butter on medium speed for 30 seconds.
Gradually beat in the granulated sugar on medium speed until fluffy. Beat in eggs on low speed, one at a time, until blended. In 3 parts, alternately add the flour mixture and the cottage cheese mixture, beginning and ending with flour mixture, scraping bowl between additions.
Divide the batter evenly among the muffin cups. Bake for 17 to 22 minutes or until a toothpick inserted in the center comes out clean. Remove the cupcakes from the pan and cool completely on a wire rack. Frost the cooled cupcakes with Daisy’s Lemon Frosting. Decorate as desired.