Step 1 – Make the Vanilla Cupcakes

1. Preheat the oven to 350°F (175°C) and line a 12-cup muffin tin with paper liners.

2. In a medium bowl, whisk together the flour, baking powder, and salt. This ensures the leavening is evenly distributed.

3. In a large mixing bowl, beat the butter and sugar together until light and fluffy, about 2–3 minutes. The mixture should be pale and airy — this step is key for a tender cupcake.

4. Add the eggs one at a time, beating well after each addition. Stir in the vanilla extract.

5. Alternate adding the dry ingredients and the milk/sour cream mixture to the butter mixture. Begin and end with the dry ingredients to help prevent overmixing. Stir until just combined.

6. Divide the batter evenly among the muffin cups, filling each about three-quarters full.

7. Bake for 18–20 minutes, or until a toothpick inserted into the center comes out clean.

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

Step 2 – Prepare the Caramel Filling

1. Once the cupcakes are cooled, use a small knife or a cupcake corer to remove the center of each cupcake, making a well about 1 inch deep.

2. In a microwave-safe bowl or small saucepan, melt the soft caramels with heavy cream. Microwave in short bursts, stirring between each, or heat over low heat on the stove.

3. Stir until smooth and let the caramel cool slightly so it thickens but is still pourable.

4. Spoon 1–2 teaspoons of the caramel into each cupcake cavity. Avoid overfilling, as the caramel may spill out when frosting.

Step 3 – Make the Cream Cheese Frosting

1. In a large mixing bowl, beat the cream cheese and butter together until completely smooth, about 2 minutes.

2. Gradually add the powdered sugar, one cup at a time, beating well after each addition. Start on low speed to avoid a sugar cloud, then increase to high for a fluffy texture.

3. Add the vanilla extract and pinch of salt, then beat until the frosting is light and holds soft peaks.

Step 4 – Assemble and Decorate

1. Transfer the frosting to a piping bag fitted with your desired piping tip.

2. Pipe swirls of frosting on top of each filled cupcake.

3. Warm additional caramel sauce slightly and drizzle over the frosting in thin ribbons.

4. Sprinkle a small pinch of flaky sea salt over each cupcake for a decorative and flavorful touch.