1. Preheat oven to 350°F. Place paper liners in 30 standard (2-1/2-inch) muffin cups.
2. For cupcakes, combine cake mix, eggs, water, oil and poppy seeds in large bowl. Beat at medium speed of electric mixer 2 minutes. Fill paper liners about half full. Bake at 350°F for 18 to 21 minutes or until toothpick inserted in center comes out clean. Cool in pans 5 minutes. Remove to cooling racks. Cool completely.
3. For lemon frosting, combine Vanilla frosting, lemon peel and lemon extract in small bowl. Tint with yellow food coloring to desired color. Frost cupcakes with lemon frosting. Decorate with gumdrops.
Coat lemon strips with granulated sugar for a quick, sophisticated garnish.