Yes, that is a Cupcake ATM, and YES it is real.
I came across this first world wonder while walking towards the Roosevelt Island Tram (another much more marvelous first world wonder).
A group of elder, and very elegant, citizens were amazed by it. One of the ladies in the group was explaining the other two members how this marvelous machine works. Yet after being mesmerized by they...proceded to enter the shop and get their treats from, well a flesh and bone trusty human.
How does it work:
It is not a very complex interaction and for its most part I feel the great appeal of it is the fact that it turns an otherwise scarce good, into fully available by following a very known and repeated rutine for most people living in a city. And no one knows how to profit this better than newyorkers: