Preheat your oven to 350°F (175°C). Line a muffin pan with cupcake liners.

In a bowl, beat together cream cheese, sugar, egg yolk, and vanilla until smooth. Set aside.

In another large bowl, cream the butter and sugar until light and fluffy. Beat in eggs and vanilla.

In a separate bowl, whisk together flour, baking powder, baking soda, and salt.

Add dry ingredients to the wet ingredients in two parts, alternating with buttermilk. Mix until just combined.

Fill each cupcake liner with a tablespoon of batter. Add a heaping teaspoon of cream cheese mixture to the center, then top with more batter until ¾ full.

Bake for 18–22 minutes or until a toothpick inserted at the edge comes out clean. Let cool completely.

To make caramel, heat sugar in a saucepan over medium heat, stirring constantly until it melts into an amber-colored syrup. Add butter and stir until melted. Slowly pour in cream, whisking until smooth. Remove from heat and stir in salt.

Once cupcakes are fully cooled, spoon or drizzle caramel sauce over the top. Serve and enjoy every gooey bite!