One challenge requires the contestants to make cocktails with their cupcakes. Judges are seen drinking the cocktails and pouring their own drinks while the cocktails are being made; however, there is no intoxication depicted.
One contestant runs over and gets a shot of vodka while she's baking; a disclaimer pops up on the screen which suggests that the impairment from alcohol may be bad for her baking.
Some episodes use alcohol for baking. Some times the judges or contestants drink alcohol.