Preheat the oven to 350°F (175°C). Line a muffin tin with cupcake liners so your cupcakes come out perfectly shaped.

Mix the dry ingredients: In a medium bowl, whisk together the all-purpose flour, baking powder, and granulated sugar. This ensures that the dry ingredients are evenly distributed throughout the batter.

Cream the butter and sugars: In a large mixing bowl, beat the softened butter, brown sugar, and granulated sugar together until light and fluffy. This will take about 3-4 minutes using an electric mixer on medium speed.

Add the eggs and vanilla: Beat in the eggs one at a time, followed by the vanilla extract. This step helps create a smooth, cohesive batter.

Combine with the dry ingredients: Gradually add the dry ingredients into the wet mixture, alternating with the milk. Start and end with the dry ingredients. Mix until just combined—be careful not to overmix.

Fill the cupcake liners: Spoon the batter into the cupcake liners, filling them about two-thirds full. This gives the cupcakes room to rise without overflowing.

Bake the cupcakes: Place the muffin tin in the oven and bake for 18-20 minutes or until a toothpick inserted into the center of a cupcake comes out clean. Be sure not to overbake to keep them moist.

Cool completely: Allow the cupcakes to cool in the tin for about 5 minutes, then transfer them to a wire rack to cool completely before frosting.

Frost with caramel sauce: Once the cupcakes have cooled, top them with your homemade caramel sauce. You can either drizzle the caramel on top or pipe it for a more decorative look.

Serve and enjoy: These caramel cupcakes are now ready to be enjoyed! Pair them with a hot drink or serve them at your next celebration for an irresistible treat.