Preheat your oven to 350°F (175°C) and line a cupcake pan with paper liners.
In a large mixing bowl, cream together the softened butter and granulated sugar until light and fluffy.
Add the eggs one at a time, mixing well after each addition. Then, stir in the vanilla extract.
In a separate bowl, whisk together the flour, baking powder, baking soda, and salt.
Gradually add the dry ingredients to the wet mixture, alternating with the milk. Mix until just combined.
Spoon the batter into the prepared cupcake liners, filling each about 2/3 full.
Bake in the preheated oven for 18-20 minutes, or until a toothpick inserted into the center comes out clean.
Remove from the oven and allow the cupcakes to cool in the pan for 5 minutes before transferring them to a wire rack to cool completely.
While the cupcakes are cooling, prepare the frosting by beating the softened cream cheese and powdered sugar together until smooth.
Gradually mix in the salted caramel sauce until well combined.
Once the cupcakes are completely cool, frost them generously with the salted caramel cream cheese frosting.
Drizzle additional salted caramel sauce on top and sprinkle with sea salt before serving.