YANBU to be homicidal annoyed at it, but YABU to send a condescending note and cupcakes. I would find that bloody offensive if it were me...As another poster said, I'd enjoy the cupcakes even though I don't like them and continue. You don't know her lifestyle or personality, you could be seriously imposing not to mention risking a disgruntled neighbour who decides to purposely annoy and stop being lovely, she could become the neighbour from Hell for all you know.
I have extremely severe insomnia. I also have a neighbour who is obsessed with his yard/lawn/trees/bushes/flowers/dirtbike/ute/paddock bomb/'Man shed' type contraptions and has all sorts of machines going from 8:00AM. The things I say about him and his brother to my mother are truly horrible when I'm grouchy and He. Just. Won't. Stop. For. Hours.
But like your neighbour, he is really lovely. Heart of gold in fact. Would give me his left leg if he thought it would help, and we barely know the guy(s)! The only time mum has requested he stop was after a particularly hard surgery and I couldn't sleep through it. He was lovely and apologetic, as is his nature. However if we started asking him to be more quiet when his huge ute comes in from his night shifts/hunting, or to shut up because we want a morning lie in? I imagine we wouldn't have such a great neighbour.
I don't know about you OP, but I've had neighbours I swear were the devil's minions. Don't cause drama over a minor annoyance. How long has she been your neighbour? You may get used to it. If you're a light sleeper and long time neighbours, perhaps try earplugs or relaxation music? Sorry if that's useless advice. I take horse tranquillizers very strong sleeping pills and I'm used to my annoying neighbour in this rural area. I guess in a way he (they..Never see his brother) seem angelic compared to neighbours on other side. Dog that ate (yes ATE) our kitten when I was five, after that dog passed got another dog from same breeder that on a walk attacked a neighbourhood girl's face so badly she was air lifted to hospital, then got another dog from (yep, you guessed; SAME BREEDER!!) who scares my dog so much I have difficulty training her outside or playing and both of us are afraid to even hang the laundry. They're in their late forties but play loud badmusic ALL day long and crack it if I mow just an inch of the neighbour strip in front of their house.
Our 'annoying' neighbour often does our very large front strip for no reason at all.
I guess what I'm saying is be careful. You could wind up with a neighbour who leaves you in tears instead of a mildly annoying one who is a kind person.