Preheat the oven to 350°F. Line a muffin tin with 12 cupcake liners and set aside.
In a food processor, pulse pistachios until they produce crumbs - but not too fine, you don't want pistachio dust! See picture above for reference. Place 1-2 tablespoons in a small bowl and set aside (you'll use these for garnish).
In a large bowl, whisk together flour, ground pistachios (all but what you reserved for garnish), baking powder, and salt. Set aside.
In another large bowl, beat butter until smooth. Add sugar and beat until light and fluffy. Add eggs, almond extract, sour cream and milk and mix to combine.
Add dry mixture to wet mixture (and add food coloring if desired) and mix on low speed until just incorporated.
Fill each cupcake liner a bit more than ⅔ full - you don't want to fill the cups completely, but pretty closely if you want a nice dome. If you'd like, sprinkle some of the remaining crushed pistachios on top. Bake for 20 minutes or until a toothpick inserted into the center comes out clean.
Let cool in pan for 5 minutes, then transfer to wire racks to cool completely.