Preheat oven to 350°F (175°C). Line 24 muffin cups with paper liners.

In a blender or food processor, combine ½ cup sugar and pistachios. Blend until very finely ground.

In a medium bowl, sift together all-purpose flour, cake flour, baking powder, and salt.

In a large bowl, beat remaining 1 cup sugar with butter until light and fluffy.

Add eggs one at a time, mixing well after each addition.

In a small bowl, combine milk and vanilla extract.

Gradually add flour mixture to the butter mixture, alternating with milk mixture. Begin and end with flour. Mix until just combined.

Fold in the ground pistachio mixture gently.

Spoon batter into cupcake liners, filling each about ⅔ full.

Bake for 15–18 minutes, or until a toothpick inserted in the center comes out clean.

Cool in the pan for 5 minutes, then transfer to a wire rack to cool completely.