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

Mix the dry ingredients: In a medium bowl, whisk together the all-purpose flour, baking powder, baking soda, and salt. Set aside.

Cream the butter and sugar: In a large bowl, beat the softened butter and granulated sugar together until light and fluffy, about 2-3 minutes. This step helps create a soft texture in the cupcakes.

Add the eggs and vanilla: Beat in the eggs one at a time, followed by the vanilla extract. Make sure each egg is fully incorporated before adding the next.

Incorporate the lime zest and juice: Stir in the fresh key lime zest and juice, giving the batter a burst of citrus flavor.

Alternate adding the dry ingredients and milk: Add a third of the dry ingredients to the butter mixture, followed by half of the milk. Mix gently. Repeat until everything is combined, but don’t overmix! You want a smooth batter, but overmixing can result in dense cupcakes.

Fill the cupcake liners: Spoon the batter into the prepared liners, filling each about ¾ full.

Bake: Bake for 18-20 minutes or until a toothpick inserted into the center comes out clean. Let the cupcakes cool in the tin for 5 minutes, then transfer to a wire rack to cool completely.

Beat the cream cheese and butter: In a large bowl, beat the softened cream cheese and butter together until smooth and fluffy.

Add the powdered sugar: Gradually add the powdered sugar, one cup at a time, beating until smooth and creamy.

Mix in the lime juice and zest: Stir in the key lime juice and zest, adding that tangy finish to the frosting.

Frost the cupcakes: Once the cupcakes have cooled completely, frost them generously with the lime cream cheese frosting. For extra flair, garnish with a sprinkle of lime zest or a small lime wedge.