In a saucepan over low heat, reduce the pomegranate juice down to 3 fluid ounces. Allow to cool.

Place butter into an electric mixer bowl with paddle attachment and cream on medium-high speed for 1 minute. Add the cream cheese and continue to mix for 2 more minutes.

Turn the speed down to low and slowly add in the powdered sugar and the pomegranate juice reduction. Mix until the sugar is fully combined. Add food coloring now if desired.

Remove icing from the mixer and place into a piping bag with a round or star tip to decorate cooled cupcakes.